In the equation GDP = C + I + G + (X-M), "I" includes
A) Investments in items like stocks and bond
B) Interest on savings accounts and other types of loans
C) Income in the form of wages, rents, profits, and other sources
D) Investments in items like structures and equipment
Answer: D) Investments in items like structures and equipment
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An input-output table details the sales of each industry to all other industries in an economy
Indicate whether the statement is true or false
Suppose an economy is in a steady state, then its saving rate falls, once and permanently. As the economy approaches its new long-run steady state, consumption per worker is ________
A) falling B) rising C) unaffected D) either rising or falling
Friedman and Phelps concluded that
a. in the long run the Phillips curve is downward sloping, which is consistent with classical theory. b. in the long run the Philips curve is downward sloping, which is inconsistent with classical theory. c. in the long run the Phillips curve is vertical, which is consistent with classical theory. d. in the long run the Phillips curve is vertical, which is inconsistent with classical theory.
Use the following choices regarding the various types of unemployment to describe this situation. Joe is looking for work as a machinist after his and most other machinist jobs were eliminated, replaced by computer-operated machines.
A. Frictional unemployment B. Structural unemployment C. Natural unemployment D. Cyclical unemployment