Used car dealerships add nothing to GDP because the cars they sell were already recorded in GDP when they were new

a. True
b. False


B

Economics

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In general, activists are ________ about the ability of the economy to remain stable and non-activists are ________

A) pessimistic; optimistic B) optimistic; optimistic C) pessimistic; pessimistic D) optimistic; pessimistic

Economics

We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will increase when

A) supply increases and demand decreases. B) supply and demand for a product simultaneously decrease. C) supply and demand for a product simultaneously increase. D) supply decreases and demand increases.

Economics

Two nations with differing comparative advantages will be able to consume more if they specialize and trade with each other than if they did not specialize or trade with each other.

Answer the following statement true (T) or false (F)

Economics

The economy is in equilibrium, TP = TE, and Real GDP is $2,000 billion. The MPC is 0.75, the multiplier is operative, and idle resources exist at each expenditure round. Autonomous investment spending falls by $10 billion. As a result, the TE curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and Real GDP

__________ by __________. A) downward; rise; decrease; falls; $7.5 billion B) downward; fall; increase; rises; $40 billion C) downward; rise; decrease; falls; $40 billion D) upward; rise; decrease; falls; $40 billion E) downward; fall; decrease; falls; $7.5 billion

Economics