GDP tends to overstate economic well-being because it takes into account:
A. All of the illegal activities conducted by organized crime in the economy
B. Spending on intermediate goods that are used to produce final goods
C. Total spending to deal with the adverse health effects of some products
D. The personal labor time that car owners spend working on car repairs and maintenance of
their vehicles
C. Total spending to deal with the adverse health effects of some products
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The sum of payments made for all types of products produced in the economy is referred to as national income
Indicate whether the statement is true or false
Suppose you are a mortgage lender. Your goal is to set your rates in such a way as to maximize your profits. How would you use what you know about inflation rates and nominal and real interest rates to determine what rate to charge?
What will be an ideal response?
Refer to the following graph.
If the price is set at Pc:
A. a nonprice rationing mechanism must determine which producers will be able to sell the product. B. a nonprice rationing mechanism must determine which buyers will be able to purchase the product. C. the demand curve will shift to the left to achieve a new equilibrium. D. anyone willing and able to pay the asking price will be able to purchase the product.
How does the liquidity approach to measuring the money supply differ from the transaction approach?
What will be an ideal response?