How is interest measured when used in deriving GDP plus non-intome expense iterms, such as indirect businesses and depreciation?
What will be an ideal response?
Interest is expressed in net terms. It is the interest received by households, less the interest they pay. It also includes the net interest received from foreigners.
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Investment averages about ____ of GDP
a. 1/6 b. 1/8 c. 1/4 d. 1/2
If a firm facing a linear demand curve experiences an increase in total revenue after lowering the price,
A. the initial price was set at a point where the demand is inelastic. B. the initial price was set at a point where the demand is elastic. C. the new price is set where the demand is perfectly elastic. D. the new price is set where the demand is perfectly inelastic.
Changes in business activity are
A. referred to as the ebb and flow of business. B. caused by the changing seasons every year. C. always undesirable. D. referred to as business fluctuations.
Market demand curves may slope downward even if some individual demand curves do not because
A. the law of demand requires that this is true. B. lower prices may bring more purchasers into the market. C. merchants try to sell more at lower prices. D. people believe expensive goods are better goods.