Transfer payments are:
a) excluded when calculating GDP because they only reflect inflation.
b) excluded when calculating GDP because they do not reflect current production.
c) included when calculating GDP because they are a category of investment spending.
d) included when calculating GDP because they increase the spending of recipients.
b) excluded when calculating GDP because they do not reflect current production.
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A firm that is earning zero economic profit should go out of business
a. True b. False Indicate whether the statement is true or false
If the Fed desires to contract the money supply, it could do any of the following: sell government bonds, raise the reserve requirement, and raise the discount rate.
Indicate whether the statement is true or false.
Nonprice competition refers to:
A. competition between products of different industries, for example, competition between aluminum and steel in the manufacture of automobile parts. B. price increases by a firm that are ignored by its rivals. C. advertising, product promotion, and changes in the real or perceived characteristics of a product. D. reductions in production costs that are not reflected in price reductions.
The difference between the marginal expenditure and the wage is greater when the supply curve of labor is
A) less elastic at the monopsony optimum. B) more elastic at the monopsony optimum. C) more elastic than the demand curve. D) The difference does not depend on any elasticity.