Both increases in the price level and increases in real GDP will decrease the demand for money
Indicate whether the statement is true or false
FALSE
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What is meant by utility?
What will be an ideal response?
Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources
A) the number of resources used should be decreased since society must protect its scarce resources. B) the concept of opportunity costs does not exist. C) more goods will be available than customers want to buy. D) the economy is producing efficiently.
The following provides data for an economy in a certain year. Consumption expenditures$1,000Imports$600Government purchases of goods and services$700Construction of new homes and apartments$500Sales of existing homes and apartments$600Exports$500Government payments to retirees$200Household purchases of durable goods$300Beginning-of-year inventory$500End-of-year inventory$600Business fixed investment$300 Given the data, compute the value of GDP.
A. $2,600 B. $2,400 C. $2,700 D. $2,500
Explain the determinants of aggregate private spending
What will be an ideal response?