A business produced $10 million of goods in 2007 but sold only $9 million. Is the $1 million increase in inventory counted as part of the 2007 gross domestic product?
What will be an ideal response?
Yes, because these inventories are part of the output of the economy in 2007.
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The above figure shows the Lorenz curves for four different countries. In which country is income most equally distributed?
A) country A B) country B C) country C D) country D
Smith's income was $50,000 in year 1 and $55,600 in year 2. The CPI was 114 in year 1 and 124 in year 2. What was the approximate percentage change in Smith's real income between the two years?
A) -2.2 percent B) +3.4 percent C) -1.7 percent D) +5.6 percent E) +2.2 percent
Refer to the graph shown. If the price level is P0 the:
A. aggregate demand curve will shift up in the long run to restore equilibrium. B. short-run aggregate supply curve will shift up (to the left) in the long run to restore equilibrium. C. aggregate demand curve will shift down in the long run to restore equilibrium. D. short-run aggregate supply curve will shift down (to the right) in the long run to restore equilibrium.
Which of the following is a Fed tool?
A. Federal funds rate B. Stock prices C. Discount rate D. Interest rate spreads