Purchases of goods and services are included in GDP, but transfer payments are not included
Indicate whether the statement is true or false
TRUE
You might also like to view...
In any year, real GDP
A) must always be less than potential GDP. B) might be greater or less than potential GDP. C) will always be greater than potential GDP because of the tendency of nations to incur inflation. D) always equals potential GDP.
The budget deficit tends to decline during periods of recession and to increase during periods of economic recovery
a. True b. False Indicate whether the statement is true or false
If the U.S. dollar depreciates, then U.S. exports become ____ expensive to foreigners and foreign goods become ____ expensive to U.S. citizens
a. less; less b. less; more c. more; less d. more; more
Suppose that two supply curves pass through the same point. One is steep, and the other is flat. Which of the following statements is correct?
a. The flatter supply curve represents a supply that is inelastic relative to the supply represented by the steeper supply curve. b. The steeper supply curve represents a supply that is inelastic relative to the supply represented by the flatter supply curve. c. Given two prices with which to calculate the price elasticity of supply, that elasticity would be the same for both curves. d. A decrease in demand will increase total revenue if the steeper supply curve is relevant, while a decrease in demand will decrease total revenue if the flatter supply cure is relevant.