Suppose a computer manufacturer purchases a $100 case from a supplier, a $300 computer chip from another supplier, and sells the computers for $1000 . How much did the company contribute to GDP?
a. $1000
b. $900
c. $700
d. $600
e. $400
D
You might also like to view...
Actual unemployment can exceed the natural rate of unemployment due to
A) cyclical unemployment. B) structural unemployment. C) frictional unemployment. D) all of the above.
An example of physical capital is a:
A. plow. B. bank loan. C. seeds. D. tree.
If either the production or consumption of a good generates an external benefit, then the:
A. social demand curve will lie to the right of the private demand curve. B. social marginal cost of the good will equal zero. C. social marginal cost curve will lie to the left of the private marginal cost curve. D. social demand curve will lie to the left of the private demand curve.
Answer the following statement(s) true (T) or false (F)
1. The government can influence the economy through its fiscal policy by making changes in the money supply. 2. When the Federal Reserve Bank buys or sells U.S. securities, it changes the level of reserves in the banking system, which has an effect on interest rates. 3. The discount rate is the interest rate banks are charged when they borrow money from the Fed. 4. The Fed relies primarily on changes in the reserve requirement (the minimum amount of money banks must hold in reserve to cover deposits) to ease or tighten the money supply.