Payments to the owners of firms are included in aggregate accounting as:
A. interest.
B. rents.
C. profits.
D. employee compensation.
Answer: C
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The value of imports and exports is recorded in
A) official settlements account. B) current account. C) international trade account. D) capital and financial account. E) official reserves account.
After a number of acquisitions, Air American controls 75 percent of the U.S. market. It has been charged with “monopolizing” the U.S. air markets by the Justice Department. In its defense, the airline would want to introduce evidence that
A. cross elasticities for air and rail travel were very high. B. income elasticities for air and rail travel were very high. C. price elasticity for air, rail, and auto travel were negative. D. management always considered the public interest when setting prices.
The quantity of money demanded suddenly increases at every combination of GDP and interest rate. If the Fed holds to an unchanged money supply target, the interest rate __________ and GDP __________
A) rises; falls B) rises; remains unchanged C) remains unchanged; remains unchanged D) remains unchanged; falls
We would be most likely to experience a shift from one Phillips curve to another if the government attempts to
a. reduce the unemployment rate and workers, fearing inflation, react by bargaining for higher wages b. reduce the unemployment rate and consumers, fearing higher taxes, cut their spending c. reduce the unemployment rate and firms hire more employees without having to raise wage rates d. reduce the unemployment rate and the inflation rate simultaneously e. reduce the inflation rate and firms respond by making no employment changes