Which of the following is NOT a component of private investment, for purposes of GDP accounting?
A. newly produced housing
B. additions to firms' stock of inventories
C. purchases by firms of used machinery
D. newly built factories
Answer: C
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A slump in one industry could increase the relative attractiveness of another industry:
A. increasing the quantity of labor demanded in the latter. B. increasing the quantity of labor supplied in the latter. C. decreasing the quantity of labor supplied in the latter. D. decreasing the quantity of labor demanded in the latter.
Gross domestic product is the
A. total spending in an economy in a year. B. value of total exports in a year. C. market value of all intermediate and final goods produced in a year. D. market value of all final goods produced in a year.
An intertemporal budget constraint
A. requires an endowment point. B. requires time to remain constant. C. has no endowment point. D. requires time to move in a loop.
In the classical model, a temporary increase in government purchases causes the new equilibrium to have
A) more employment and a lower real wage than before. B) more employment and a higher real wage than before. C) less employment and a lower real wage than before. D) less employment and a higher real wage than before.