Which of the following best describes the situation at point B in Exhibit 10-3?
What will be an ideal response?
real GDP exceeds aggregate expenditure
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Research seems to suggest that corporate culture
A) is unrelated to stock performance. B) is closely related to stock performance. C) helps determine the cost of capital. D) is easily transferable across organizations.
The city of Ann Arbor Michigan buys a police car manufactured in Germany. In the GDP accounts this transaction is included in
a. in government expenditures and exports. b. government expenditures and imports. c. exports, but not government expenditures. d. imports, but not government expenditures.
Protesters insist that the economic benefits of trade have social costs that go unrecognized.
Whether or not you agree with them, make a list of those social costs.
In the basic Keynesian model, a tax cut:
A. reduces short-run equilibrium output. B. reduces potential output. C. increases short-run equilibrium output. D. increases potential output.