GDP does not include which of the following activities?
A.
Businesses installing anti-pollution equipment
B.
Households spending to enhance security of their neighborhoods
C.
Couples remodeling their own homes
D.
Families eating out in restaurants
C.
Couples remodeling their own homes
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In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. A recessionary gap exists
A) if the long-run aggregate supply curve is LAS1. B) if the long-run aggregate supply curve is LAS2. C) if the long-run aggregate supply curve is LAS3. D) All of the above answers are correct.
Which of the following is true if a nation's official money fails to serve as a medium of exchange? a. Nothing will replace money to help facilitate exchange. b. There will be an increase in economic efficiency
c. Resources will divert from production to exchange. d. Transactions costs of exchange will decrease. e. Fewer barter exchanges will be completed.
Demand is inelastic if the price elasticity of demand is greater than 1
a. True b. False Indicate whether the statement is true or false
A new member of Congress notes that "[p]ersonal income tax collections automatically fall and transfers and subsidies automatically rise as national income declines." This observation best describes how the personal income tax, transfers, and subsidies:
A. produce the cyclically adjusted budget. B. cause crowding out and reduce equilibrium GDP. C. contribute to the recognition lag with fiscal policy. D. serve as built-in stabilizers.