GDP measures underestimate the value of output produced by an economy because they include services not transferred through markets.
Answer the following statement true (T) or false (F)
False
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Factors of production are
A. Scarce in every society. B. Unlimited in quantity. C. Scarce only in advanced countries. D. Scarce only in the poorest countries of the world.
Which of the following is NOT a deficit item on the international accounts balance sheet for a country?
A. imports of merchandise B. purchases of foreign currency C. exports of merchandise D. military spending abroad
If aggregate demand is stable and there is economic growth, the economy will experience
A) secular depreciation. B) secular decline. C) secular deflation. D) secular degeneration.
In the Keynesian model, the real wage is mildly procyclical because
A) demand for labor fluctuates with the demand for final goods. B) firms take advantage of recessions to pay slightly lower wages, since there's excess labor supply. C) workers' effort may depend on the unemployment rate and the real wage. D) the supply of labor fluctuates with the business cycle.