The GDP tends to:
a) overstate economic welfare because it does not include certain nonmarket activities such as the productive work of housewives.
b) understate economic welfare because it includes expenditures undertaken to offset or correct pollution.
c) understate economic welfare because it does not take into account increases in leisure.
d) overstate economic welfare because it does not reflect improvements in product quality.
c) understate economic welfare because it does not take into account increases in leisure.
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If this is an open economy, the price of a car will be ________. 
A. $8,000/car B. $6,000/car C. $10,000/car D. $14,000/car
Assume a country is required by law to balance the budget every year. Suppose aggregate demand falls, causing a recession and a budget deficit
To balance the budget, what would the government need to do with the level of government spending and taxes? How would these changes in government spending and taxes affect aggregate demand and the economy?
Suppose the Federal Reserve announces that it will be making a change to a key interest rate to decrease the money supply. This is likely because the Federal Reserve is
a. worried about inflation. b. worried about unemployment. c. hoping to increase the demand for goods and services. d. worried that the economy is growing too slowly.
Some countries are much poorer today than other countries because some
What will be an ideal response?