Which of the following is included in "compensation of employees" part of the income approach to measuring GDP? I. Wages and salaries. II. Pension fund contributions. III. Social Security contributions
A) I only
B) I and II
C) I and III
D) I, II and III
D
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Unlike Classical economists, Keynes believed that the economy could be trapped in a depression and not return to full employment without government intervention
Indicate whether the statement is true or false
Evidence from the United States and other foreign countries indicates that
A) there is a strong positive association between inflation and growth rate of money over long periods of time. B) there is little support for the assertion that "inflation is always and everywhere a monetary phenomenon." C) countries with low monetary growth rates tend to experience higher rates of inflation, all else being constant. D) money growth is clearly unrelated to inflation.
Workers prefer layoffs to wage reductions during economic downturns because
A) layoffs benefit workers more than the firms. B) workers try to provide firms with incentives to report true economic conditions. C) firms will keep workers even during economic downturns to avoid more costs. D) there is symmetric information.
A horizontal aggregate supply curve causes higher inflation, rather than higher output, to result from increases in the money supply.
Answer the following statement true (T) or false (F)