When gross domestic product (GDP) is adjusted by adding any income earned abroad by U.S. firms or residents which is sent back to the United States and by subtracting any income earned in the United States by non-U.S
corporations or foreign nationals which is sent back to their home countries, it is called
A) depreciation. B) international GDP.
C) subsidized income. D) gross national product (GNP).
D
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Explain how the money market determines the equilibrium interest rate
What will be an ideal response?
Traditional economic models highlight social dimensions of economic problems.
Answer the following statement true (T) or false (F)
Estimates of the income elasticity of demand for health care indicate that it is about 1. These estimates suggest that spending on health care will probably:
A. increase faster than income. B. increase proportionately with income. C. increase less than income. D. not increase or decrease.
Shocks to the economy often result in calls for government action to correct the imbalances these shocks create. Why don't markets tend to correct these imbalances quickly by themselves?
A. Government policy is the primary cause of shocks, so government policy is the only way to correct the imbalances they create. B. Product prices are often "sticky" or inflexible, keeping markets from correcting imbalances quickly. C. Prices adjust too quickly for markets to correct imbalances. D. Buyers and sellers in markets don't react rationally when shocks occur.