the value of paper used to make books should be added to GDP.
a. true
b. false
b. false
You might also like to view...
In the regression model Yi = β0 + β1Xi + β2Di + β3(Xi × Di) + ui, where X is a continuous variable and D is a binary variable, β3
A) indicates the slope of the regression when D=1. B) has a standard error that is not normally distributed even in large samples since D is not a normally distributed variable. C) indicates the difference in the slopes of the two regressions. D) has no meaning since (Xi × Di) = 0 when Di = 0.
Holding other things constant, increases in the price level in the US will
a. Cause the dollar to gain value b. Cause the dollar to lose value c. Does not affect the dollar value d. None of the above
If the money supply increased by 4 percent and velocity increased by 4 percent: a. nominal GDP would not change
b. nominal GDP would increase by 1 percent. c. nominal GDP would increase by 4 percent. d. nominal GDP would increase by 8 percent.
Given full-employment output = $2,800, equilibrium output = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full- employment level of national output?
a. $300 decrease in taxes b. $75 increase in government spending c. $75 decrease in taxes d. $300 increase in government spending e. $75 decrease in government spending