In the expenditure approach to GDP, which of the following would be excluded from measurements of GDP?
A) Government payments for goods produced by foreign firms
B) Government payments for goods produced by firms owned by state or local governments
C) Government payments for welfare
D) All government payments are included in GDP.
C
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How does an open market operation change the monetary base?
What will be an ideal response?
Albert's Pretzel Baking Company used to have four workers who were each in charge of making their own pretzels from start to finish
Now, one worker mixes the dough, another shapes it, the third puts the unbaked pretzels into the oven and the fourth removes the finished product. Output has doubled. This is an example of A) neutral technical change. B) labor-saving technical change. C) an organizational innovation. D) economies of scale.
Use the above figure. If a commission regulates the above monopoly using fair-return (average cost pricing), then the industry's output will be ________ and the product's price will be ________
A) Q1; P1 B) Q2; P3 C) Q3; P2 D) Q4; P1
Which of the following would be most likely to cause a reduction in current aggregate demand in the United States?
a. increased fear of a recession b. an increase in the expected rate of inflation c. a sharp increase in the value of stocks owned by Americans d. a rapid increase in the growth of income in Canada, Mexico, and Western Europe