Assume that the size of the underground economy increases both absolutely and relatively over time. As a result:
A. real GDP will rise more rapidly than nominal GDP.
B. GDP will tend to increasingly understate the level of output through time.
C. GDP will tend to increasingly overstate the level of output through time.
D. the accuracy of GDP will be unaffected through time.
B. GDP will tend to increasingly understate the level of output through time
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The figure above shows Cindy's demand for CDs per year
a. What is Cindy's consumer surplus on all the CDs consumed if the price of a CD is $12? b. What is Cindy's consumer surplus on all the CDs consumed if the price of a CD is $9? c. What happens to Cindy's consumer surplus when the price of a CD falls?
For international trade to benefit a country, it must benefit all citizens of that country
a. True b. False Indicate whether the statement is true or false
Which of the following is likely to increase the elasticity of demand for a good?
A. A decrease in the price. B. A decrease in the availability of close substitutes. C. A longer period of time. D. A smaller share of income designated for the good in question.
In the market for bank reserves, if the federal funds rate target is higher than the federal funds rate, the Fed will take action to ________ reserves.
Fill in the blank(s) with the appropriate word(s).