Using the expenditure approach to deriving gross domestic product, if imports rise and exports remain the same
A. GDP rises.
B. GDP remains the same.
C. GDP indicates a recession.
D. GDP falls.
Answer: D
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The tendency for inflation to change relatively slowly from year to year in industrial countries is called:
A. the inflation gap B. potential inflation. C. inflation inertia. D. inflation expectations.
If a 10 percent cut in price causes a 15 percent increase in sales, then:
a. total revenue will decrease. b. demand is price inelastic in this range. c. demand is price elastic in this range. d. demand is unit elastic in this range. e. total revenue will remain the same.
A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are called
a. inventory goods. b. transitory goods. c. final goods. d. intermediate goods.
The liquidity trap is the
A) vertical portion of the demand curve for money. B) horizontal portion of the demand curve for money. C) vertical portion of the supply curve of money. D) horizontal portion of the supply curve of money. E) vertical portion of the demand curve for investment.