What does gross private domestic investment include?
a. Business purchases of capital goods, all new construction, and purchases of consumer durable goods.
b. Business purchases of capital goods, all new construction, and inventory investment.
c. Business purchases of capital goods, all new commercial construction, and inventory investment.
d. Business purchases of capital goods, all new residential construction, and inventory investment.
e. Business purchases of all types of durable goods, all new construction, and inventory investment.
B
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If persistent inflation was due to declines in long-run aggregate supply, what pattern would be observed?
A) Only prices of services would increase; prices of goods would remain constant. B) Increases in the price level would occur simultaneously with increases in real GDP. C) Increases in the price level would occur simultaneously with decreases in real GDP. D) Only prices of goods would increase; prices of services would remain constant.
Stadiums and arenas built for use by professional sports teams are often paid for by local governments using tax dollars
What kind of goods are these stadiums and arenas, and why would government use tax dollars to pay for them when the professional sports franchises that use them are generally quite successful, financially?
Refer to the figure above. What is the consumer surplus when Lithasia engages in trade and the government imposes a $1 tariff on chairs?
A) $100 B) $120 C) $180 D) $200
According to the Taylor rule:
A. if real GDP rises by 2 percent above potential GDP, the Fed should raise the real federal funds rate by 1 percentage point. B. when real GDP is equal to potential GDP and inflation is equal to its target of 4 percent, the federal funds rate should be kept at 2 percent. C. if inflation falls by 1 percentage point below its target of 2 percent, then the Fed should raise the real federal funds rate by one-half a percentage point. D. all of these are appropriate Fed actions.