Sales of intermediate goods and services (goods and services purchased for further reprocessing and resale) are excluded from GDP to avoid the problem of double counting, which is counting an item's value more than once
Indicate whether the statement is true or false
true
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At a fixed level of worker productivity, ________
A) lower wages reduce quantity of labor demanded B) higher wages reduce cost of production C) higher wages reduce profits D) lower wages increase quantity of labor supplied
An inflation-prone country
A) gains from vesting its monetary policy decisions with a "conservative" central bank. B) loses from vesting its monetary policy decisions with a "conservative" central bank. C) gains from vesting its fiscal policy decisions with a "conservative" central bank. D) loses from vesting its fiscal policy decisions with a "conservative" central bank. E) remains constant when vesting its fiscal policy decisions with a "conservative" central bank.
If AS increases at a faster rate than AD, the result will be
A. demand-side inflation. B. supply-side inflation. C. falling prices. D. stable prices.
Expansionary fiscal policy leads to
A) lower exchange rates, increased exports, and increased imports. B) higher exchange rates, decreased exports, and decreased imports. C) lower exchange rates, decreased exports, and decreased imports. D) higher exchange rates, decreased exports, and increased imports.