At the end of the year, Ford realizes it has overproduced Fiestas, because 2,500 of them are left unsold. How is this accounted for in that year's GDP? The cars are:
A. considered inventory and their value will increase investment.
B. considered durable goods, and their value will increase consumption.
C. not counted until they are sold in next year's GDP.
D. considered a bad thing and reduce the value of investment.
A. considered inventory and their value will increase investment.
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Economic growth was stimulated by suburbanization
A. in the first five years after World War II. B. in the 15 years following World War II. C. from the mid 1960s to the mid 1970s. D. after the Persian Gulf War.
The cyclical rate of unemployment plus the measured unemployment rate equal the natural rate of unemployment
Indicate whether the statement is true or false
The typical cyclically unemployed person includes
A) Andrew, a teenager who has just entered the labor market looking for his first part-time job. B) Barbara, who is re-entering the labor market after a divorce. C) Charles, who was laid off from his factory job but expects to be recalled in a few weeks. D) Diana, who has quit her job and is now looking for another.
Suppose the government imposes a tax of 20 percent on the first $50,000 of income and 30 percent on all income above $50,000 . What is the average tax rate when income is $60,000?
a. 21.7 percent b. 25.0 percent c. 46.7 percent d. 50.0 percent