The income approach measures GDP by summing
A) the wealth of households, business and government.
B) the incomes paid households for the resources they own.
C) the total production of all final goods and services produced in a year within a country's borders.
D) C + I + G + NX.
E) Both answers A and D are correct.
B
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When the price level rises as a result of a decrease in aggregate supply, it is called cost-push inflation
a. True b. False Indicate whether the statement is true or false
The private sector of the economy produces mainly goods that are nonexcludable
a. True b. False
In the long run, the exit of firms from a perfectly competitive market is caused by
a. a steeper demand curve constraining the firm b. normal profits c. economic losses d. antitrust enforcement e. government policy
An individual's quantity of money demanded
a. refers to how much money the individual would like to have b. refers to the amount of money an individual needs to maintain her desired standard of living c. refers to her wealth constraint d. refers to the amount of her wealth that an individual chooses to hold in the form of money e. is virtually unlimited