National income accountants define investment to include ________.
A. the purchase of common or preferred stock
B. the addition of cash to a savings account
C. any increase in business inventories.
D. the purchase of any consumer durable good, for example, an automobile or a refrigerator
Answer: C
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Use the following table, which lists output quantities and prices for the only three goods in the economy, to answer the next question. The base year is 2007.YearHot DogsBaseballsBottles of Beer?PriceQuantityPriceQuantityPriceQuantity2005$2.00100$2.5050$1.0010020064.001005.001002.0015020075.001005.001002.0020020088.001508.002004.00200200910.0020010.002004.00250The Consumer Price Index for the year 2009 is
A. 50. B. 200. C. 100. D. 150.
The GDP price index equals ________.
A. gross private domestic investment less the consumption of fixed capital B. nominal GDP divided by real GDP C. gross national product less net foreign factor income earned in the United States D. real GDP divided by nominal GDP
According to the text, the essence of good management is:
A) to determine when a free lunch is actually free. B) to be sure there are not "too many chefs stirring the broth." C) to ensure that the reputation of the firm remains high. D) to ensure that the stock price remains high. E) to determine whether the implementation of a practice increases the value that a firm adds.
For the short-run Phillips curve to remain relatively stable, then changes in real GDP must occur primarily as a result of shifts in: a. changes in aggregate demand
b. changes in real wages caused by changes in the supply of labor. c. changes in inflationary expectations. d. changes in aggregate supply.