To calculate GDP:
A. add the quantity of all goods and services sold in an economy in a year.
B. add the quantity of all final goods and services produced in an economy in a year.
C. weight the output of each good and service produced in an economy in a year by its price in that year and then total the result.
D. weight the output of each final good and service produced in an economy in a year by its price in that year and then total the result.
Answer: D
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According to the Coase Theorem
a. efficiency can result only if producers hold the property rights b. an efficient outcome is possible as long as property rights are assigned c. efficiency is not possible in the presence of an environmental externality d. none of the above
Any change that reduces desired saving relative to desired investment (for a given level of output) causes the real interest rate to ________ and shifts the IS curve ________
A) increase; down and to the left B) increase; up and to the right C) decrease; down and to the left D) decrease; up and to the right
A binding price floor creates
a. deadweight loss. b. consumer surplus. c. producer surplus. d. deadweight gain.
Say's Law states that by purchasing goods and services, buyers stimulate firms to produce goods and services equal to what has been purchased: Demand creates its own supply
a. True b. False