Many state and local governments find themselves faced with increasing retirement expenditures for retired government employees. These increasing expenditures will ________ GDP because they are categorized as ________
A) increase; government purchases
B) increase; gross private domestic investment
C) decrease; state and local government purchases
D) not change; transfer payments.
D
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Refer to the Article Summary. Assume that more foreign governments and hospitals begin to offer and publicize their medical services to American medical tourists and, due to the growing number of aging baby boomers, more Americans desire hip-
replacement surgery. All else equal, what will happen in the market for hip-replacement surgery as a result of these two factors? A) Demand will increase, but these two factors will not shift the supply curve. B) Demand and supply will both increase. C) Demand will increase and supply will decrease. D) Supply will increase, but these two factors will not shift the demand curve.
In setting reserve requirements, the Fed divides deposits into which of the following two broad categories?
a. NOW accounts and ATS accounts b. savings accounts and non personal time accounts c. transaction accounts and non personal time accounts d. check able deposits and transaction accounts
The marginal physical product of capital is the
a. addition to total physical product generated by an additional unit of capital b. average contribution of capital to total output c. use of capital in production d. contribution of equipment capital to loanable funds e. profit made by an entrepreneur since the entrepreneur is the capitalist
Use the following diagram to answer the next question.
In the diagram, solid arrows reflect real flows and broken arrows are monetary flows. Flow (7) might represent
A. wage payments to public school teachers. B. subsidies to corporations to stimulate exports. C. a transfer payment to disabled persons. D. the U.S. Bureau of Engraving and Printing's expenditures for paper.