Which of the following are examples of the gross private domestic investment component of GDP?
I. the purchase of production machinery by IBM
II. an increase in the finished goods inventory at Intel
A) I only
B) II only
C) both I and II
D) neither I nor II
C
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If the share of population employed in two countries is the same, average living standards will be higher in the country with:
A. lower average labor productivity. B. higher average labor productivity. C. the smaller population. D. the larger population.
According to the Lucas critique, changes in economic policy are likely to have important effects on
A) the available amounts of natural resources. B) the behavior of consumers and firms. C) the preferences of consumers. D) none of the above
A concentration ratio is used to
A) determine whether a market structure is oligopoly. B) determine the importance of labor in the production process. C) determine the degree of homogeneity in the market. D) see if a firm qualifies for federal assistance.
The intersection of the aggregate demand and the aggregate supply curve defines the equilibrium level of _____ and the price level
a. real interest rate b. nominal interest rate c. nominal GDP d. real GDP e. unemployment