The services produced by spouses who cook, clean, and otherwise maintain homes are not counted in the gross domestic product because
A) services are not tangible goods.
B) there is no accepted and reliable way to measure their value.
C) they do not add to the wealth of the nation.
D) this would entail double-counting, since such spouses usually receive free room and board.
E) while they are useful services, they do not represent productive labor.
B
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A nation's net exports consist of
A) its exports plus its imports. B) its exports plus all other nation's imports. C) its exports minus its imports. D) its imports plus all other nation's exports.
If there are no changes in inflation expectations, a sale of government bonds by the Fed in the open market will cause ________
A) both the federal funds rate and long-run expected real interest rate to rise B) both the federal funds rate and long-run expected real interest rate to fall C) the federal funds rate to fall and the long-run expected real interest rate to rise D) the federal funds rate to rise and the long-run expected real interest rate to fall
At equilibrium, quantity demanded equals quantity supplied
a. True b. False Indicate whether the statement is true or false
If the economy is at full employment,
A) the only unemployment is frictional unemployment plus discouraged workers. B) all unemployment is cyclical and structural. C) real GDP equals potential GDP. D) the entire labor force is employed. E) the entire population is employed