GDP excludes the purchases of sliced bread by a sandwich shop, because the bread is an intermediate good in this case
a. True
b. False
Indicate whether the statement is true or false
True
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The figure above shows the U.S. supply of labor curve. What was the effect of the decline in birth rates during the 1960s and 1970s on the supply of labor curve in the 1980s?
A) a leftward shift of the supply of labor curve B) a rightward shift of the supply of labor curve C) a movement downward along the supply of labor curve from a point such as A to a point such as B D) The supply of labor curve became steeper. E) None of the above answers is correct because there was no change in the supply of labor curve.
When the Federal Reserve sells a government security to a commercial bank
A) the cash reserves of the commercial bank decrease. B) the net worth of the commercial bank increases. C) the loans of the commercial bank will increase. D) the balance sheet of the commercial bank is thrown off balance.
The main idea behind supply-side tax cuts is that
a. tax cuts increase spending, which increases aggregate supply. b. some tax cuts can increase aggregate supply. c. people like lower taxes and will spend more if they get them. d. it is easier to shift aggregate supply than aggregate demand.
Cashing out capital gains in Virtual Currency System #3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to fall. b. M2 money supply to fall. c. M2 money multiplier to remain the same. d. M2 money supply to rise.