Which of the following is a shortcoming of GDP?
a. GDP measures used goods and services.
b. GDP includes changes in inventories.
c. GDP includes the value of net exports.
d. GDP does not make an allowance for leisure time.
d
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The price of a smartphone increased from $350 to $400 while the price of a smartphone app increased from $1 to $2. The relative price of smartphones in terms of smartphone apps
A) increased from 200 to 350. B) decreased from 350 to 200. C) increased from 0.003 to 0.05. D) decreased from 0.35 to 0.2.
If the supply curve remains constant, an outward shift in the demand curve for a commodity causes the price of factors used in its production to decline
a. True b. False Indicate whether the statement is true or false
Fiscal stimulus is:
A. An increase or decrease in government spending. B. An increase in government spending or a decrease in taxes. C. Achieved when government dollars are spent on consumer goods but not on military goods. D. The difference between equilibrium output and full-employment output.
The concept that market forces in the macroeconomy can remedy a recession is referred to as:
Keynesianism: the use of expansive fiscal and monetary policies to resolve a recession. The self-correcting mechanism The consumption function The paradox of thrift