Which of the following statements about GDP is correct?
a. GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy's labor force.
b. Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
c. GDP is to a nation's economy as household income is to a household.
d. All of the above are correct.
c
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Rebecca can stitch 6 shirts in a day while Eliza can stitch only 5 shirts in a day. Rebecca can stitch 2 trousers in a day while Eliza can stitch 3 trousers in a day. Which of the following is true in this case?
A) Rebecca has a comparative advantage in stitching trousers. B) Eliza has an absolute advantage in stitching trousers. C) Rebecca has an absolute advantage in stitching trousers. D) Eliza has a comparative advantage in stitching shirts.
Refer to Table 2.3. Nominal GDP in 2007 is
A) $320.63. B) $490.00. C) $568.00. D) $1282.50.
When a country removes a specific import restriction, it always benefits every worker in that country.
Answer the following statement true (T) or false (F)
Gold certificates, special drawing rights, the reserve position of the IMF, and the holdings of foreign currencies represent:
A) physical assets. B) reserve assets. C) monetary assets. D) none of the above.