Why are only final goods and services included in measuring GDP? Give examples to complete your answer
What will be an ideal response?
We purposely leave intermediate goods or services out of our calculation of GDP so we don't double count. Examples of this are not counting the tires produced by Firestone that are then sold to Ford to be placed on their new cars. If we counted the tires when they were produced by Firestone and then also counted them when they were part of the Ford, we would be double counting them.
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Frieda wishes to buy a house worth $400,000 in the southern part of Florencia. If she decides to save half of her income from now on, which of the following is most likely to be true in this scenario? a. Her consumption function will be flatter
b. Her consumption function will be steeper. c. Her consumption function will shift upward. d. Her consumption function will shift downward.
The signaling theory of education maintains that workers who complete specific levels of education enhance their productivity through education
a. True b. False Indicate whether the statement is true or false
Suppose the economy is in long-run equilibrium. If the government decreases its expenditures, eventually the decrease in aggregate demand causes price expectations to
a) fall. This fall in price expectations shifts the short-run aggregate-supply curve to the right. b) fall. This fall in price expectations shifts the short-run aggregate-supply curve to the left. c) rise. This rise in price expectations shifts the short-run aggregate-supply curve to the right. d) rise. This rise in price expectations shifts the short-run aggregate-supply curve to the left.