The total volume of business sales in our economy is several times larger than GDP because ________.
A. GDP does not take taxes into account
B. GDP grossly understates the value of our annual output
C. GDP excludes intermediate transactions
D. Total sales are in money terms and GDP is always stated in real terms
Answer: C
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A downward movement along the labor demand curve occurs when ________, assuming all else equal
A) the price of the output that the labor is used to produce increases B) the price of the output that the labor is used to produce decreases C) the wage rate increases D) the wage rate decreases
Which statement is true?
A. After settling its case with the Justice Department, Microsoft will not face any further serious litigation for at least another decade. B. Most of the largest corporate mergers in U.S. history took place between 1985 and 1995. C. Deregulation has been a complete failure. D. The history of antitrust goes back to the late 19th century.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
The extent to which investment spending changes with changes to income is called? the:
A) marginal propensity to consume.
B) marginal propensity to save.
C) marginal propensity to import.
D) marginal propensity to invest.