Total purchases of new final goods equals total output of new final goods in the income and product accounts
What will be an ideal response?
because unsold goods are assumed to be purchased by the firms that produced them and added to their inventories of finished goods.
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Economies can be organizations such as
A) households. B) individual states of the United States. C) entire countries. D) households, states, and countries.
In the fall of 2012, more than three years after the end of the recession, the unemployment rate remained just below 8% and nearly half of the unemployed had been out of work for at least six months
Unemployment had been so high for so long, that many economists had begun speaking of the "new normal", in which unemployment rates might be stuck at higher levels for many years. If this "new normal" does materialize, these higher unemployment rates would most likely be the result of ________ unemployment. A) frictional B) cyclical C) structural D) seasonal
Which of the following is not generally considered a failing of market economies?
a. Market economies can have severe swings from boom to bust. b. Market economies tend to underprovide public goods. c. Market economies tend to promote equity at the expense of efficiency. d. Market economies can misallocate resources when property rights are ill defined.
If only one good is supplied and demanded in an economy, then GDP will be equal to the price of the good multiplied by the number of units of the good supplied in a year
a. True b. False Indicate whether the statement is true or false