Which of the following statements is true?
A. The inclusion of intermediate goods and services into GDP calculations would underestimate our nation's production level.
B. The expenditures approach sums the compensation of employees, rents, profits, net interest, and nonincome expenses for depreciation and indirect business taxes.
C. Real GDP has been adjusted for changes in the general level of prices due to inflation.
D. Real GDP equals nominal GDP multiplied by the GDP deflator.
Answer: C
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Generating electricity creates air pollution. This industry, if left unregulated, will produce
A) more than the efficient level of output. B) the efficient level of output. C) less than the efficient level of output. D) sometimes more and sometimes less than the efficient level of output.
The Fed can simultaneously reduce the inflation rate and stimulate growth through lowering interest rates
Indicate whether the statement is true or false
If GDP increases in the model of public goods
A) people are richer, so they need less public goods. B) there is substitution from private goods to public goods. C) if the government provides public goods optimally, public and private goods production both increase. D) all of the increase in GDP goes into public goods.
A ticket to an Eric Clapton concert costs $45 . If you have a ticket, you can "scalp" it (sell it illegally) for $75 . To a ticket holder, the opportunity cost of actually attending the concert is
a. $45. b. $50. c. $75. d. $115.