Which of the following expenditures would be included in GDP for this year?
a. The purchase of a new car.
b. The purchase of a new tire by General Motors for a new car.
c. The purchase of a used car.
d. All of these would be included.
a
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Many economists believe that our price indexes ________ the true inflation rate
A) minimize B) overstate C) understate D) perfectly measure
The above table gives data for the nation of South Hampton. There are no imports into or exports from South Hampton. The equilibrium level of real GDP is
A) $700 billion. B) $400 billion. C) $500 billion. D) $600 billion. E) $800 billion.
Assume that the research team of a major company is building a model of consumer demand that contains approximately 250 variables. Can you think of a principle that might be violated here that was discussed in chapter 1? Explain
What will be an ideal response?
If the interest rate is 10 percent, the net present value of $600 to be received two years from now is
a. $495.87. b. $545.45. c. $600. d. $660.