The consumption component of GDP includes spending on
a. durable goods and nondurable goods, but not spending on services.
b. durable goods and services, but not spending on nondurable goods.
c. nondurable goods and services, but not spending on durable goods.
d. durable goods, nondurable goods, and services.
d
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People have a strong incentive to form rational expectations because
A) they are guaranteed of success in the stock market. B) it is costly not to do so. C) it is costly to do so. D) everyone wants to be rational.
Elasticities are often _______ in the short run than in the long run.
a. higher b. lower c. equal d. congruent
Despite both monetary and fiscal policy actions, real GDP declined at an annualized rate of 6% during the last quarter of 2008 and the first quarter of 2009
a. True b. False Indicate whether the statement is true or false
Increases in labor productivity from improved technology
a) increase the long run supply of labor b) reduce the demand for labor c) reduce real wages d) induce firms to substitute capital for labor e) have no long run effect on total hours worked