In the aggregate expenditures model, if an economy operates below equilibrium GDP, there will be unplanned inventory accumulation
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose an economist claims there are substitutes for wetlands. The person is saying
A) wetlands are of no value. B) wetlands are worth less than their substitutes. C) there is a cost to maintaining a wetland. D) there is a cost to maintaining a wetland, and it is necessarily too high. E) economists don't like wetlands.
Mid-1960s amendments to the Social Security Act created
a. managed care. b. Medicare and Medicaid. c. major medical insurance. d. Blue Cross and Blue Shield. e. tax exemptions for health insurance as an employee benefit.
Carefully explain why tariffs create deadweight losses
What will be an ideal response?
GDP is the:
A. sum of coins, bills, and demand deposits circulating in an economy one year period. B. total expenditures of the federal government over the period of one year. C. market value of an economy's production of final goods and services in a one year period. D. market value of an economy's production of all goods and services in a one year period.