It is not uncommon for people to say something like, "If we can put someone on the moon we should be able to . . . ," followed by the person's favorite project. What response can an economist make to this person?
What will be an ideal response?
Society must make choices, and when it chooses one thing, it must give up something else. Resources were used to get people to the moon, and these resources are not available to do other useful things. The fact that we put someone on the moon means that there are some other things we cannot do.
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Neither intermediate goods nor used goods are included in GDP. Explain why these expenditures are not included in GDP
What will be an ideal response?
Are the members of the Board of Governors of the Federal Reserve System elected officials?
What will be an ideal response?
India’s real GDP was $2.5 trillion in 2018. Using the simple aggregate expenditure model and assuming that the country’s economy was in equilibrium, what was India’s aggregate expenditure?
a. $25 billion b. $250 billion c. $2.5 trillion d. $250 trillion
For a country with a fixed exchange rate and no sterilization: When the FE curve is flatter than the LM curve, a negative domestic spending shock to the IS curve creates a balance of payments deficit, which then causes the LM curve to shift to the left.
Answer the following statement true (T) or false (F)