The value of intermediate goods is not included in the calculation of GDP to avoid the problem of
A. depreciation.
B. inflation.
C. double counting.
D. transfer payments.
Answer: C
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If two goods are ________, then an increase in the price of one leads to ________ in the quantity demanded of the other
A) complements; a decrease B) complements; no change C) substitutes; a decrease D) substitutes; no change E) normal; an increase
How are the following events likely to affect an economy's production possibilities curve?
a. An increase in the working population of the economy b. The import of better production technology c. A natural disaster that destroys some of the economy's resources d. Emigration of workers to other countries
In equilibrium under monopolistic competition: a. firms always earn profits in the short run
b. firms always suffer losses in the short run. c. output is at the socially efficient level in the long run. d. marginal revenue is less than price.
The financial system coordinates investment and saving, which are important determinants of long-run real GDP
a. True b. False Indicate whether the statement is true or false