Gross domestic product understates the total production of final goods and services because of the omission of

A) exports.
B) inflation.
C) intermediate goods.
D) household production.


Answer: D

Economics

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If the current margin is greater than the desired margin, the firm should

a. Increase production b. Decrease production c. Not change production level d. Production ceases

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If planned aggregate expenditure (PAE ) in an economy equals 2,000 + 0.8Y and potential output (Y*) equals 11,000, then this economy has:

A. no autonomous expenditure. B. a recessionary gap. C. no output gap. D. an expansionary gap.

Economics

In a competitive market the demand curve shows the ________ received by consumers and the supply curve shows the ________

A) economic surplus; opportunity cost B) utility; average cost. C) marginal benefit; marginal cost D) net benefit; net cost

Economics

If the ________ curve is relatively more unstable than the ________ curve, an interest rate target is preferred

A) IS; IS B) IS; LM C) LM; IS D) LM; LM

Economics