Gross domestic product is the sum of the purchase price multiplied by the quantity of:
a. goods and services exchanged during the period.
b. final goods and services produced domestically during the period.
c. goods and services produced domestically during the period minus the depreciation of productive assets.
d. final goods and services plus intermediate goods produced domestically during the period.
b
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Firms will invest in new equipment whenever:
A. public saving is greater than private saving. B. the expected cost of the equipment exceeds the expected benefit. C. the expected cost of the equipment is less than the expected benefit. D. the expected cost of the equipment is greater than the value of the marginal product of the equipment.
Refer to the above figure. A price ceiling of $20 results in
A) a shortage of 100 units. B) a shortage of 200 units. C) a surplus of 100 units. D) a surplus of 200 units.
In the aggregate expenditures model, if an economy operates above equilibrium GDP, there will be:
a. unplanned inventory accumulation. b. a decrease in GDP. c. a decrease in employment. d. all of the above.
The supply curve for the pure monopolist is upsloping.
Answer the following statement true (T) or false (F)