Suppose that inventories were $40 billion in 2012 and $50 billion in 2013. In 2013, national income accountants would ________.
A. subtract $45 billion (= $90/2) from other elements of investment in calculating total investment
B. add $45 billion (= $90/2) to other elements of investment in calculating total investment
C. subtract $10 billion from other elements of investment in calculating total investment
D. add $10 billion to other elements of investment in calculating total investment
Answer: D
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Refer to Figure 16-11. In the graph above, the shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion
A) would be greater than B) would be equal to C) would be less than D) may be greater than or less than
If Health Spas charges an annual membership fee of $1,000 for the use of their facilities and charges a $20 fee each time a member uses their facilities, the $1,000 charge is a(n) ________ fee and the $20 charge is a(n) ________ fee.
A) user; user B) fixed; fixed C) user; fixed D) fixed; user
The term "open market operations" refers to the
a. loan-making activities of commercial banks. b. effect of expansionary monetary policy on interest rates. c. operation of competitive markets in the banking industry as the result of deregulation. d. buying and selling of government securities by the Federal Reserve.
Which of the following would likely not be a goal of a union?
A. Increasing the size of the union B. Increasing union income C. Increasing wages of union members D. Increasing wages of nonunion members