If we included the purchases of used goods in GDP,
a. we would be overestimating GDP
b. we would be underestimating GDP
c. we would be accurately measuring GDP
d. the effect on GDP would vary depending on what year the goods were sold new
e. we could offset any measurement problems by also including purchases of stocks and bonds
A
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Comparing marginal revenue to marginal cost (i) reveals the contribution of the last unit of production to total profit. (ii) is helpful in making profit-maximizing production decisions. (iii) tells a firm whether its fixed costs are too high
a. (i) only b. (i) and (ii) only c. (ii) and (iii) only d. (i) and (iii) only
M1 does not include
A. currency. B. travelers' checks. C. MMMFs. D. transaction accounts.
When a bank accepts a checkable deposit from a customer, its deposits will increase and its excess reserves will:
A. Increase by the same amount as deposits B. Increase by less than the deposits C. Increase by more than the deposits D. Decrease
For a given domestic and foreign price level, an increase in the nominal exchange rate ________ the real exchange rate.
A. offsets any change in B. may either increase or decrease C. increases D. decreases