Your parents surprise you with a $500 check. As a result, the U.S. GDP
A. remains unchanged because it was counted when your parents earned it.
B. increases because this is unexpected income to you.
C. decreases because you will spend it on useless goods.
D. decreases because you have to pay taxes on this income.
Answer: A
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The current deregulatory movement began to change laws to deregulation in the
A. early 1970s. B. late 1970s. C. early 1980s. D. early 1990s.
If the natural unemployment rate is 5.5 percent, then the economy is in a recessionary gap when the actual unemployment rate is
A) greater than 5.5 percent. B) between 0 and 5.5 percent. C) 0 percent. D) 5.5 percent.
If the interest elasticity of money demand is -0.1, by what percent does money demand change if the nominal interest rate rises from 2% to 3%?
A. -5% B. 0% C. -0.1% D. 5%
Federal Reserve notes are
A) paper currency. B) checks issued by the U.S. government. C) savings bonds. D) travelers' checks.