Gross domestic product does not measure
A) the sum of the value added by producers at each stage of the production process.
B) the total income received by producers for the services they supply.
C) the total purchases of newly-produced final goods.
D) the total welfare of the noninstitutional population.
D
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Explain why the multiplier in an open economy is different from the multiplier in a closed economy
What will be an ideal response?
When the price of a good rises, there is
A) an increase in supply. B) a decrease in supply. C) a decrease in quantity supplied. D) an increase in quantity supplied.
If the GDP price index is 125 and nominal GDP is $130 billion, then real GDP equals ________ billion
A) $104.00 B) $162.50 C) $96 D) $1.04 E) $9.6
Empirical studies of production suggest that the long-run average cost curve
a. is U-shaped b. has an inverted L shape c. is L-shaped d. is horizontal e. shows diminishing marginal returns