Ethan purchases a new house for $170,000 . Ethan's purchase of the house contributes $170,000 to which magnitude in the identity Y = C + I + G?
a. C
b. I
c. G
d. None of the above are correct.
b
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Why does an external cost lead to inefficient overproduction?
What will be an ideal response?
Faster economic growth in the United States may lead to the serious macroeconomic problem of higher
A. levels of unemployment. B. federal budget deficits. C. levels of inflation. D. levels of poverty.
Fine Edge manufactures lawn mowers. In 2014 it had $2 million worth of lawn mowers in inventory. In 2015 it sold $10 million worth of lawn mowers to consumers and had $1 million worth of lawn mowers in inventory. How much did the lawn mowers produced by Fine Edge add to GDP in 2015?
a. $11 million b. $10 million c. $7 million d. $9 million
Greg, a U.S. citizen, works only in Canada. Where is the value that his labor contribute to put in national income accounting?
What will be an ideal response?