Which of the following statements regarding the gross domestic product is true?
a. It is useful in comparing the overall performance of different economies at the same time
b. It measures aggregate income in an economy over a period of ten years.
c. It measures the value of all goods and services produced in the world during a given period.
d. It is a measure of an economy's price level during a particular year.
e. It records the cumulative value of all goods and services produced by domestically owned factors of production.
a
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The Federal Reserve is best suited to alleviating
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) The Federal Reserve is equally suited to alleviate all three types of unemployment.
The investment function intersects the saving schedule at an interest rate of 8 percent and a level of investment of $1.2 trillion a year. If the consumption curve intersects the 45-degree reference line at $3 trillion, then
A) the C + I curve will intersect the 45-degree reference line at $1.2 trillion. B) the C + I curve will intersect the 45-degree line at $1.8 trillion. C) the equilibrium level of real GDP is $1.8 trillion. D) the equilibrium level of real GDP is $4.2 trillion.
A perfectly competitive firm maximizes its economic profit when it produces the quantity that sets
A) MR = MC. B) TR = TC. C) MC =.AVC. D) MC = ATC.
Government purchases are defined as
A) only goods purchased by federal, state, or local governments. B) all goods and services purchased by the federal government. C) all goods and services purchased by the federal or state government. D) all goods and services purchased by the federal, state, or local government. E) goods and services purchased from the government.