Which of the following purchases is included in personal consumption expenditures when determining gross domestic product?
A) purchase of a new house because of the arrival of a new baby
B) purchase of a new office building
C) vacation expenses for a spring trip to Fort Lauderdale
D) purchases of jeans to add to a store's inventory
C
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Rent control is an example of
A) a price floor. B) a price ceiling. C) the rationing function of prices not working. D) the government increasing the demand for certain products.
An appreciation of one's currency means that:
a. the country's exports will become less expensive. b. the country's imports will become more expensive. c. the country's imports will become less expensive. d. it now requires more of this currency in exchange for one unit of another currency. e. it now requires less units of other currencies in exchange for one unit of this currency.
Government intervention that aims to promote technology-enhancing industries is called
a. assisted technology. b. intervention policy. c. industrial technology assistance. d. industrial policy.
Which of the following observations is true?
A. Tax changes have no impact on the consumption schedule. B. Tax reduction shifts the consumption schedule upward. C. Changes in taxes have a multiplier effect on equilibrium GDP on the supply-side. D. Tax increases increase equilibrium GDP.