Answer the following questions true (T) or false (F)
1. If Gladys sells her 2003 Jeep Cherokee for $3,500 in 2018, the sale of her car contributes $3,500 to 2018 GDP.
2. The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and profits received by households or total expenditures on goods and services by households, firms, government, and the rest of the world.
3. Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.
1. FALSE
2. TRUE
3. FALSE
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A ________ shows how much a firm will produce as a function of how much it thinks its competitors will produce
A) contract curve B) demand curve C) reaction curve D) Nash equilibrium curve E) none of the above
When the money market is drawn with the value of money on the vertical axis, if the Fed sells bonds then
a. the money supply and the price level increase. b. the money supply and the price level decrease. c. the money supply increases and the price level decreases. d. the money supply increases and the price level increases.
Demand-side changes explain everything about stagflation.
Answer the following statement true (T) or false (F)
The change in total cost that results from the production of one additional unit is called:
A. marginal revenue. B. average variable cost. C. marginal cost. D. average total cost.