The income approach to measuring GDP ________.
A. focuses on how income is spent
B. uses the payments paid to the four resources used to produce goods and services to estimate GDP
C. adds up all household expenditures to calculate aggregate income and GDP
D. ignores how income is earned and focuses instead on how it is used
Answer: B
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Assuming all else equal, the ________, the lower the nominal interest rate
A) lower the inflation rate B) higher the inflation rate C) lower the income tax rates D) higher the income tax rates
Fixed exchange rates serve as a constraint on inflationary government policies
a. True b. False Indicate whether the statement is true or false
Under international trade we export those goods for which we have a relatively low
A. materials cost. B. wage cost. C. accounting cost. D. opportunity cost.
Two years ago, when her plant closed, Sue Ann McCoy was earning $18 an hour as an assembly line worker. She is unwilling to accept a large pay cut and has been out of work for three years. She is __________ unemployed.
A. frictionally B. structurally C. cyclically D. seasonally