Are sales of used goods included in GDP? Explain why or why not. Hint: Remember how GDP is defined
Sales of used goods are not included. GDP measures production within a given period.
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A student wrote: "Monopolistic competition is a market structure in which a small number of firms compete by making an identical product." If you were the instructor, how would you correct this statement?
What will be an ideal response?
Assume the United States is the "domestic" country and China is the "foreign" country. Which of the following might increase the real exchange rate between the United States and China?
A) an increase in the price level in the United States. B) an increase in the price level of China C) a depreciation of the dollar D) an appreciation of the yuan
When economists study the behavior of buyers, they are studying:
A) supply. B) the role of government. C) demand. D) psychology.
If a bank has $6 billion in reserves and loans $2 billion to another bank, then the total quantity of reserves demanded is:
A) $6 billion. B) $8 billion. C) $2 billion. D) $4 billion.