Changes in business inventories are:
A. classified as government purchases.
B. classified as investment expenditures.
C. excluded from GDP.
D. classified as consumption expenditures.
Answer: B
You might also like to view...
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Which of the following describes a barrier to entry?
A) something that establishes a barrier to expanding output B) anything that protects a firm from the arrival of new competitors C) a government regulation that bars a monopoly from earning an economic profit D) firms already in the market incurring economic losses so that no new firm wants to enter the market E) Firms are legally prohibited from exiting the market in order to enter another market.
Which of the following is the central bank of the United States?
A) Comptroller of the Currency B) Treasury Department C) Federal Reserve System D) Office of the Budget
"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have
A) a negative slope. B) a positive relationship. C) a direct relationship. D) a horizontal line.