The local car dealership has an increase in inventory of 100 newly produced cars in 2015 . In 2016, it sells all 100 cars. Which of the following statements is correct?
a. The value of the cars in inventory will be counted as part of 2015 GDP, and the value of the cars sold in 2016 will not increase 2016 GDP.
b. The value of the cars in inventory will not affect 2015 GDP, and the value of the cars sold in 2016 will increase 2016 GDP.
c. The value of the cars in inventory will be counted as part of 2015 GDP, and the value of the cars sold in 2016 will increase 2016 GDP.
d. The value of the cars in inventory will not affect 2015 GDP, and the value of the cars sold in 2016 will not increase 2016 GDP.
a
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Joe consumes crawfish and shrimp. His utility function exhibits diminishing marginal utility of crawfish but the marginal utility of shrimp is constant. Will Joe's indifference curves be convex?
What will be an ideal response?
We would expect that policies to protect workers would:
A. lead to greater unemployment. B. lead to less unemployment. C. have no impact on unemployment. D. affect those seasonally unemployed more profoundly than other unemployed workers.
What is the source of the demand for loanable funds in the open-economy macroeconomic model?
In an open economy, a decrease in capital inflows ________ the equilibrium domestic real interest rate and ________ the quantity of domestic investment.
A. decreases; decreases B. decreases; increases C. increases; decreases D. increases; increases