Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016?
A) the value of the house in 2016
B) the value of the house in 2016 minus depreciation
C) the value of the services of the real estate agent
D) the value of the house in 2003
C
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The certainty equivalent of a gamble is negative when tastes are risk loving.
Answer the following statement true (T) or false (F)
Using the money demand and money supply model, show and explain why the Federal Reserve cannot achieve a target for both the money supply and an interest rate
What will be an ideal response?
Which of the following is a type of ownership that features a fixed payment?
a. common stock b. preferred stock c. retained earnings d. bonds
Which of the following assumptions is crucial to the classical macroeconomic model's assertion that the economy has built-in forces that automatically eliminate unemployment and quickly move the economy to its potential level of real GDP?
A. profit motive B. rigid wages and prices C. flexible wages and prices D. natural rate of unemployment