The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because
a. some of the income from the factory accrues to people who do not live in Algeria.
b. gross domestic product is income earned within a country by both residents and nonresidents, whereas gross national product is the income earned by residents of a country while producing both at home and abroad.
c. all of the income from the factory is included in Algeria's GDP.
d. All of the above are correct.
d
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If real GDP in 2002 is $10 trillion, and in 2003 real GDP is $9.5 trillion, then real GDP growth from 2002 to 2003 is
A) 0.5%. B) 5%. C) 0%. D) -5%.
Which of the following most clearly distinguishes government from a private business?
a. production of goods and services-private businesses produce things; governments do not b. the power to tax c. the hiring of law enforcement employees to protect property rights d. selfishness-the owners and managers of private businesses are selfish; government officials are not
Why is there a lag between the Fed's actions and the economy's response?
In the long run, a decrease in aggregate demand will lead to a(n) _____
Fill in the blank(s) with the appropriate word(s).