If a German firm produces cars in the United States, that production should count towards
A) U.S. GDP. B) German GDP.
C) U.S. GNP. D) both U.S. GNP and German GDP.
A
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Suppose a country experiences an increase in output per worker. Such a development represents which of the following?
A) an increase in labor productivity B) an increase in population growth C) a reduction in the saving rate D) a decrease in economic growth
If the Fed does not take into account the additional policy channels available in an open economy, then ________ when conducting contractionary monetary policy
A) it is likely to increase GDP too little and cause a recession B) it is likely to decrease GDP too little and inflation will persist C) it is likely to decrease GDP too much and cause a recession D) it is likely to increase GDP too much and inflation will persist
Because deadlines are frequently missed, budgets typically run from year to year based on _____
a. continuing resolutions b. budget resolutions c. congressional suggestions d. the suggestions of the President e. the suggestions of the President's Council of Economic Advisers
The federal government subsidizes higher education
A. less than primary and secondary education. B. more than primary and secondary education. C. about the same as primary and secondary education. D. because it does not subsidize primary and secondary education.