Which of the following activities would be included in GDP?
A. Your roommate pays you $40 to clean the house.
B. Your parents send you $40 to hire a house cleaner, and you clean the house and keep the $40 yourself.
C. You hire a cleaning service at $40 to clean your house.
D. All of these would be included in GDP, since there was a monetary exchange.
Answer: C
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Suppose the economy is initially in long-run equilibrium. For each of the shocks listed below, explain the long-run effects on output and the price level
(a) Labor supply decreases. (b) The government shuts down the Bureau of Economic Analysis. (c) Productivity increases.
Inferior goods may also be referred to as
A) countercyclical goods. B) cyclical goods C) substitutes. D) anti-luxury goods.
Last month 5,000 people decided to quit their jobs in order to seek better employment opportunities. These people are
a. structurally unemployed b. frictionally unemployed c. discouraged workers d. cyclically unemployed e. underemployed workers
Below, the graph on the left shows long-run average and marginal cost for a typical firm in a perfectly competitive industry. The graph on the right shows demand and long-run supply for an increasing-cost industry.
What output will the firm produce?
A. 400 B. 350 C. 300 D. 250