In order to bring GDP and national income into accord,
a. add indirect business taxes to national income and we have GDP
b. add depreciation of capital and indirect business taxes to GDP and we have national income
c. subtract depreciation of capital from GDP and we have national income
d. subtract depreciation of capital and proprietor's income from GDP and we have national income
e. subtract depreciation of capital and indirect business taxes from GDP and we have national income
E
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Refer to Table 19-18. What is the GDP deflator in 2016 if 2016 is the base year?
A) 120 B) 118 C) 100 D) 87
The name given to the fraction of deposits that a bank is legally required to hold in its vault, or as deposits at the Fed, is __________.
A. Assets B. Assets + a bank's liabilities C. Capital D. Required reserves
In year 1 the CPI is 140, and in year 2 the CPI is 160. From year 1 to year 2, Chiang's salary rises from $42,000 to $49,000, and Marta's salary rises from $55,000 to $60,000. Who is "more than keeping up with inflation"?
A) Marta B) Chiang C) both Marta and Chiang D) neither Marta nor Chiang
The short-run average total cost curve eventually begins to increase at an increasing rate because of
A) economies of scale. B) the constraint that the firm cannot change production technologies. C) diminishing returns phenomena. D) increasing returns to scale.