If in the process of calculating GDP, the market value of all intermediate goods is added to the market value of all final goods, this would
A) overstate the actual value of GDP.
B) produce the correct value of GDP.
C) understate the actual value of GDP.
D) avoid the possible error of double counting.
A
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The Coase theorem states that
A) government intervention is always needed if externalities are present. B) assigning property rights is the only thing the government should do in a market economy. C) under certain conditions, the property right to an activity will be acquired by the party that values it most. D) a free-market equilibrium is the best solution to address externalities.
Expansionary monetary policy is designed to stimulate the economy by increasing the money supply, but not create much inflationary pressure
Indicate whether the statement is true or false
Which of the following coordinates the choices of buyers and sellers, bringing quantity demanded and quantity supplied into balance?
a. government mandates b. the market price c. taxes and subsidies d. consumer demand
The total of all planned real expenditures in the economy is called
A. aggregate consumption. B. aggregate GDP. C. aggregate spending. D. aggregate demand.