Assume that Intel sells? $1 billion of computer chips to? Dell, Inc., for use in? Dell's personal computers. This transaction ________
Ans: does not affect aggregate expenditure because computer chips are an intermediate good, and including the value of the computer chip would be double counting
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In Zealand, banks' desired reserve ratio is 20 percent and there is no currency drain. The money multiplier equals ________
A) 0.50 B) 0.20 C) 20.0 D) 5.0
Consider a monopolist with linear (inverse) demand p = a - bQ and constant average and marginal cost, c. Derive the monopolist's profit and the deadweight loss generated
Show that in such cases of linear demand and constant average and marginal cost, the deadweight loss is 50% of the monopolist's profits.
A tariff on a particular good does which of the following? a. It increases the net-of-tariff price received by foreign producers
b. It increases the price of the good to domestic consumers. c. It redistributes income away from domestic producers toward domestic consumers. d. none of the above
While tax cuts may increase productivity, the government is forced to redistribute the tax burden or cut its own spending
a. True b. False