GDP minus final sales gives a measure of the
A. change in business inventories.
B. non-residential investment.
C. value of intermediate goods.
D. GNP.
Answer: A
You might also like to view...
The introduction of seat belts increased the number of accidents, even though the number of fatalities decreased. This is most likely a result of
a. Moral hazard b. Adverse selection c. seat belts distracting drivers d. None of the above
Which of the following is not an example of a flow variable?
a. The amount of income that a person earns each month b. The amount of interest that a savings account earns each week c. The amount of money in a savings account d. The amount of taxes that a person pays each year e. All of these are flow variables
If the marginal propensity to save is 0.2, what is the expenditure multiplier?
a. 0.8 b. 1.2 c. 2 d. 5
Opponents of using the inflation tax to finance government budget deficits argue that:
A. the economic slowdown produced by the inflation tax is more damaging than the hyperinflation that would occur in the absence of the inflation tax. B. inflation is ultimately beneficial in the long run. C. the government can raise taxes to eliminate any budget deficit. D. the inflation tax is a temporary solution that requires ever higher levels of inflation to remain effective.