Which of these goods will not be counted in GDP?
A. the spark plug sold by an auto parts store to go into a Ford when the original wears out.
B. the Ford manufactured in the US in last year and sold in the US this year.
C. the Ford manufactured in the US and sold in Canada.
D. the Ford manufactured in Mexico and sold in Mexico.
Answer: D
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Explain the difference between induced consumption expenditure and autonomous consumption expenditure. Why isn't all consumption expenditure induced expenditure?
What will be an ideal response?
If a country choose to dollarize, it has relinquished its
A) monetary policy autonomy. B) pain from realignments C) ability to conduct fiscal transactions. D) ability to borrow internationally.
The short run is that period during which there are no fixed commitments.
Answer the following statement true (T) or false (F)
The most significant problem in trying to empirically measure the real rate of interest is that
A) there are so many different types of bonds. B) expected inflation is unobservable. C) interest rates fluctuate so much from day to day. D) banks infrequently change the prime rate of interest.