Of what use is national income accounting to economists and to policy makers?
What will be an ideal response?
There are three basic reasons for the importance of national income accounting. First, it gives us a measure of the state of the economy at a particular point in time. Second, it permits us to track the condition of the economy over time to see whether it has grown or stagnated. Third, it provides the basis for making economic policy decisions.
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What was suggested by Keynes to move the economy out of a depressed state?
A. The invisible hand B. The price mechanism C. Monetary and fiscal policy D. Zero government intervention
A competitive market is characterized by the Question 6 options:
A. presence of at least one broker or auctioneer, so that price fixing is possible. B. existence of many buyers and sellers, so that no one can influence the price. C. existence of a physical location where buyers and sellers meet. D. presence of many different goods, so that there is never a shortage of goods to buy.
Small-denominated time deposits, by definition:
A. mature in one month or less. B. mature in one year or less. C. are less than $100,000. D. are held by state and local banks only.
An increase in the demand for corn is more than offset by an increase in its supply. As a result, the equilibrium price will ________ and the equilibrium quantity will ________.
A. decrease, increase B. increase, increase C. decrease, decrease D. increase, decrease