Nominal gross domestic product is based on the existing prices at which final goods are actually sold
a. True
b. False
Indicate whether the statement is true or false
True
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Producer surplus is the difference between the lowest price a firm is willing to accept for a product and the price it actually receives for the product
Indicate whether the statement is true or false
Real business cycle theory argues that the primary cause of business cycles is fluctuations in
A) preferences. B) government spending. C) the importance of externalities. D) total factor productivity.
The _________ approach allows us to calculate GDP and _________ is not a component of GDP
a. income; personal consumption b. income; exports c. expenditure; durable goods d. expenditure; government purchases e. expenditure; interest
Which of the following will cause an increase in aggregate demand?
A. Restrictive fiscal policy. B. An increase in the reserve requirement. C. Expansionary monetary policy. D. The sale of bonds by the Fed.