Which of the following does not constitute a household consumption item?
a. A pair of jeans
b. A bottle of Beck's beer
c. A haircut
d. A steam turbine electric generator
e. A packet of breakfast cereal
d
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An example of household production excluded from GDP is
A) household cleaning services provided by Merry Maids Incorporated. B) child care provided by a certified nanny. C) tree trimming you provide at your parents' home. D) plumbing work completed by Joe Fix-it. E) lawn care provided by a local lawn care company.
Suppose the economy is at the natural real GDP. Changing macroeconomic policy to lower the interest rate while not affecting output means shifting the IS curve to the ________ and the LM curve to the ________
A) right, right B) right, left C) left, right D) left, left
If a business firm is not operating at the point where MR = MC, then:
a. it should shut down. b. it will incur losses. c. it cannot be earning a profit. d. its profit is zero. e. it is not earning the maximum potential profit.
Real wages more accurately reflect the payment to labor because they are adjusted for the effects of inflation
a. True b. False Indicate whether the statement is true or false