A tax cut of $12 billion will have less effect on the economy than an increase in government purchases of $12 billion.
Answer the following statement true (T) or false (F)
True
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The sale of financial assets, such as stocks and bonds, is ________.
A. not included in GDP, because they do not increase domestic production B. not included in GDP, because they do not increase domestic wealth C. included in GDP, because they increase domestic wealth D. included in GDP, because they raise domestic production
A natural monopoly exists if: a. several former competitors merge to become the only producer in the industry
b. average cost of production is lowest when only one firm produces the entire industry output. c. one firm controls the supply of an essential input used by the industry. d. a firm has a patent or copyright.
The total market value of capital assets in the United States is about $30 trillion dollars
a. True b. False Indicate whether the statement is true or false
The aggregate demand curve is downward sloping because
a. an increase in the price level will cause an increase in spending on goods and services. b. at lower price levels, real wealth decreases, causing a decrease in the quantity demanded of goods and services. c. at lower price levels, interest rates increase, causing a decrease in the quantity demanded of goods and services. d. at lower price levels, net exports increase, causing an increase in quantity demanded of goods and services.