Which of the following observations concerning GDP calculations is true?
a. Goods and services produced by governments are valued at market price.
b. Inventories are treated as if they are yet to be sold.
c. Goods produced but not sold during the year are counted in that year's GDP.
d. Goods that firms add to their inventories do not count in the GDP.
c
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If the demand and supply both increase equally, then the equilibrium price ________, and the equilibrium quantity ________
A) increases; increases B) does not change; increases C) decreases; does not change D) increases; does not change E) increases; decreases
Suppose a tax on sellers has been imposed in the graph shown. Once the tax is in place, the buyers purchase ____ units and pay ____ for each one.
A. 15; $16
B. 15; $6
C. 31; $9
D. 31; $19
According to Keynes, if the economy is in a deep recession, an increase in aggregate demand will
A. increase real GDP without putting significant upward pressure on the price level. B. decrease real GDP. C. increase the price level with no effect on real GDP. D. increase both real GDP and the price level.
When the Fed buys federal government securities on the open market from commercial banks, over time, the:
A. assets of these banks fall. B. liabilities of the bank fall. C. assets of the banks rise. D. liabilities of the bank rise.