Which of the following would not be counted as a final good for inclusion in GDP?
a. a piece of glass bought by a consumer to fix a broken window
b. a sheet of glass purchased by General Motors for the side window of a new car
c. a sheet of glass produced this year and ending up in the inventory of a retail hardware store
d. All of the above are counted.
b
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The aggregate demand curve indicates the relationship between:
a. the real wage rate and the quality of resources demanded by producers of goods and services. b. the interest rate and the amount of loanable funds demanded by borrowers. c. the natural rate of unemployment and the demand for goods and services when the economy is in long-run equilibrium. d. the general price level and the aggregate quantity of goods and services demanded.
The tax multiplier equals 1 ? spending multiplier
a. True b. False Indicate whether the statement is true or false
In 1970, Professor Plum earned $12,000; in 1980, he earned $24,000; and in 1990, he earned $36,000 . If the CPI was 40 in 1970, 70 in 1980, and 130 in 1990, then in real terms, Professor Plum's salary was highest in
a. 1970 and lowest in 1980. b. 1970 and lowest in 1990. c. 1980 and lowest in 1970. d. 1980 and lowest in 1990.
Economics is the social science that studies
A) the real reasons people buy goods and services. B) the psychology of individuals and businesses. C) whether a nation has enough natural resources. D) how people make choices to cope with scarcity. E) how choices made in the social interest could eliminate scarcity.