Included in the investment category of GDP under the expenditure approach is the purchase of parcels of land for the purposes of realizing capital gains when real estate values rise
a. True
b. False
Indicate whether the statement is true or false
False
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A situation in which some resources are NOT fully utilized is represented in a production possibilities frontier diagram by
A) any point on either the horizontal or the vertical axis. B) the midpoint of the production possibilities frontier. C) a point outside the production possibilities frontier. D) a point inside the production possibilities frontier.
Which of the following statements is true?
A) If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. B) An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply. C) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. D) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
The Federal Reserve System was created by act of Congress in 1931 in an effort to end a wave of bank failures brought on by the Great Depression
a. True b. False Indicate whether the statement is true or false
The economy's long run aggregate supply curve
a. is horizontal, indicating that the economy always reaches full employment in the long run. b. is vertical at the full-employment level of output, indicating that the price level is constant in the long run. c. is horizontal, indicating that prices are constant in the long run. d. is vertical at the full-employment level of output, indicating that the economy always reaches full employment in the long run. e. is vertical at the zero budget deficit level of output.