A car that is produced in 2016 is not sold until 2017. According to the definition of GDP, in which year's GDP should it be counted?
A) Half of the sales price will count as part of 2016 GDP and half will count as part of 2017 GDP.
B) The production cost will count as part of 2016 GDP while the sales price will count as part of 2017 GDP.
C) 2017
D) 2016
D
You might also like to view...
Most innovation comes from universities and governments, which are inherently market driven.
Answer the following statement true (T) or false (F)
If inflation is expected by both borrowers and lenders, then we would expect
A. real rates to be higher than nominal rates of interest. B. real rates to be equal to nominal rates of interest. C. real rates to be lower than nominal rates of interest. D. nominal rates of interest to be less than the expected inflation rate.
Ups and downs in business activity are referred to as
A. ebb and flow. B. business fluctuations. C. variability. D. contractions.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.