Refer to the diagrams, in which AD 1 and AS 1 are the "t;before" curves and AD 2 and AS 2 are the "after" curves. Other things equal, an increase in investment spending is depicted by:
A. panel (A) only.
B. panel (B) only.
C. panel (C) only.
D. panels (B) and (C).
C. panel (C) only.
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The Bureau of Economic Analysis excludes from its calculation of GDP most of the goods produced that are not sold in markets because
A) their production has no real costs. B) their value is implicitly included in the prices of marketed goods. C) there is no satisfactory way to measure their value. D) they do not contribute to national welfare. E) this would be inappropriate for an exchange economy.
The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation, but ________ quality increases. This causes the CPI to ________ the cost of the market basket
A) not; overstate B) also; understate C) also; overstate D) not; understate
If you were a member of the NBER business-cycle dating committee, would you declare that the U.S. economy is now in a recession? Why? Describe the major variables that you would look at to determine whether the economy is in a recession or not, and what features of the data you would look for.
What will be an ideal response?
Clean air and clean water are considered normal goods by economists, so as countries get richer, they want to consume more of these goods.
Answer the following statement true (T) or false (F)