The industries or sectors of the economy in which business cycle fluctuations tend to affect output most are:
A. military goods and capital goods.
B. services and nondurable consumer goods.
C. clothing and education.
D. capital goods and durable consumer goods.
D. capital goods and durable consumer goods.
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The federal government of the United States has ________
A) proven itself unable to significantly influence U.S. home ownership B) has been able to increase the volume of home ownership in the U.S. C) proven itself able to effectively control monetary policy D) has been unable to increase the volume of government spending since WWII
Suppose the price of gasoline rises and consumers cut back on their use of gasoline relative to other consumer goods. This situation would contribute to which bias in the consumer price index?
a. Substitution bias. b. Transportation bias. c. Quality bias. d. Indexing bias.
The marginal productivity theory of distribution has been criticized because
a. it assumes that the existing distribution of ownership factors is fair and just when it may not be. b. it does not tell us much about real policy matters. c. a factor's MRP does not in any way correspond to productive effort. d. All of the above are correct.
Which one of these is counted in GDP?
A. The purchase of a used car B. The purchase of 100 shares of IBM C. Government spending on a NASA project to go to Venus D. The purchase of a 10-year-old office building