In calculating the GDP, national income accountants:
A. treat inventory changes as an adjustment to personal consumption expenditures.
B. ignore inventories because they do not represent final goods.
C. subtract increases in inventories or add decreases in inventories.
D. add increases in inventories or subtract decreases in inventories.
D. add increases in inventories or subtract decreases in inventories.
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The price of a stock is equal to the present value of expected future dividend payments from the stock
Indicate whether the statement is true or false
Neither the supply of nor demand for a good is perfectly elastic or perfectly inelastic. So, imposing a tax on the good results in a ________ in the price paid by buyers and ________ in the equilibrium quantity
A) rise; an increase B) rise; a decrease C) fall; an increase D) fall; a decrease E) rise; no change
Monetary policy authorities can affect real interest rates
A) in the short run, but not in the long run. B) in the long run, but not in the short run. C) permanently. D) both in the long run and the short run.
The primary benefits derived from tariffs usually accrue to the:
a. domestic consumers of goods protected by the tariffs. b. foreign producers of goods protected by the tariffs. c. domestic producers of export goods. d. domestic suppliers of goods protected by the tariffs.