Nominal gross domestic product:
A.
Is not affected by the level of inflation
B.
Changes only when there is a change in output
C.
Changes only when there is a change in the price level
D.
Can change when there is a change in either output or the price level
D.
Can change when there is a change in either output or the price level
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Gross domestic product understates the total production of final goods and services because of the omission of
A) intermediate goods. B) exports. C) inflation. D) the underground economy.
In the circular flow model, households
A) spend earnings from resource sales on goods and services in the product market. B) and firms spend earnings from resource sales on goods and services in the factor market. C) sell goods and services in the input market. D) hire resources sold by firms in the factor market.
If a defendant believes there is a 60 percent chance that the plaintiff will win $400,000 and a 40 percent chance the plaintiff will lose and receive nothing (zero) and the defendant's litigation cost is $150,000, what is the defendant's expected loss from the litigation?
A) $120,000 B) $90,000 C) $390,000 D) $360,000
All other factors equal, as nominal interest rates decrease, checking account balances should:
A. remain constant. B. be converted to cash. C. increase. D. decrease.