Suppose a tax cut affects aggregate demand and aggregate supply. Which of the shifts raise real GDP?
a. both the shift of aggregate demand and the shift of aggregate supply
b. the shift of aggregate demand, but not the shift of aggregate supply
c. the shift of aggregate supply, but not the shift of aggregate demand
d. neither the shift of aggregate demand nor the shift of aggregate supply
a
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________ choose the quantities of goods and services to produce, while ________ choose the quantities of goods and services to buy
A) Households; firms B) Firms; households and the government C) The government; firms D) Firms; only households E) Households; the government
Why are transfer payments included in personal income but not in national income? Are transfer payments included in GDP?
Suppose that industry X and industry Y have intra-industry trade indexes equal to 0.80 and 0.20, respectively. Which of the following is then correct?
a. There is a greater share of intra-industry trade in industry X than in industry Y. b. There is a greater share of intra-industry trade in industry Y than in industry X. c. Industry X and industry Y have equal shares of intra-industry trade. d. There is no intra-industry trade in either industry X or industry Y.
If the nominal interest rate is 8 percent and the real interest rate is 3 percent, then the inflation rate equals:
A. 5 percent. B. 8 percent. C. 11 percent. D. 3 percent.