Which of the following transactions would be included in the official calculation of GDP?
A) You wash and wax your father's car as a favor to him.
B) You illegally download music off the Internet to put on your new iPod.
C) You buy a new iPod.
D) A student buys a used textbook at the bookstore.
E) Firestone sells $2 million worth of tires to General Motors.
C
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Which one of the following is a tool of monetary policy for altering the reserves of commercial banks?
a. Issuing currency b. Acting as the fiscal agent for the Federal government c. Check collection d. Open-market operations
Keynes believed that prices and wages were rigid or fixed until the economy reaches ______.
a. equilibrium b. full employment c. recession d. expansion
Unemployment rates above the target rate of unemployment lead to:
A. an upward shift of the short-run Phillips curve. B. a rightward shift of the long-run Phillips curve. C. a leftward shift of the long-run Phillips curve. D. a downward shift of the short-run Phillips curve.
The mid-point method of calculating elasticity is typically used because:
A. it is universally understood by all economists. B. it is a consistent way to estimate the elasticity of demand between two points on a demand curve, regardless of the direction of the movement. C. it is easier to calculate. D. the negative sign can then be ignored.