The U.S. produces and sells millions of different products. To aggregate them together into a single measure of domestic output, the quantity of each good produced is weighted by its ________.
A. utility to consumers
B. cost of production
C. market price
D. contribution to corporate profits
Answer: C
You might also like to view...
Fiscal policy attempts to make access to credit easier and cheaper
Indicate whether the statement is true or false
If the government ran a major budget deficit, and there was no noticeable effect on the level of GDP, this could be taken as evidence of
a. Laffer curve effect. b. structural deficit. c. crowding-out. d. monetary policy ineffectiveness.
Long-run macroeconomic growth
A. Moves the economy closer to the production possibilities curve. B. Shifts the aggregate supply curve to the left. C. Shifts the production possibilities curve outward. D. Shifts the aggregate demand curve to the right.
The interest percent charged by the Fed on loans to depository institutions is knows as the
A. discount rate. B. prime rate. C. federal funds rate. D. commercial paper rate.