Explain the difference between U.S. GDP and U.S. GNP
What will be an ideal response?
U.S. GDP is the total market value of all final goods and services produced within the United States within a given year. U.S. GNP is calculated by adding to U.S. GDP the net income earned by U.S. firms and residents abroad. Thus, U.S. GNP measures the total income earned by U.S. firms and residents worldwide.
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Which of the following are liabilities to a bank?
A. vault cash and demand deposits B. property and capital stock C. capital stock and reserves D. demand and time deposits
The policy of keeping tax rates stable as government spending fluctuates is known as ________
A) Ricardian equivalence B) tax smoothing C) crowding-out D) a tax smoothie
During the recessions of the early 1980s and of 2007–2009, the unemployment rate in the United States: a. increased significantly
b. decreased to almost zero. c. became negative. d. remained constant.
In the long run in a perfectly competitive industry
A. opportunity costs are negligible. B. only entrepreneurs will earn more than their opportunity costs. C. some firms will be experiencing economic losses. D. economic profits will be zero.