In the determination of production of goods or services with respect to GDP, transfer payments are included
Indicate whether the statement is true or false
FALSE
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In some markets consumers may buy many different brands of a product. Which of the statements below best represents a situation where demand for a particular brand would be very elastic?
A. "The brand I buy is so superior to other available brands that I hardly consider the others." B. "I use so little of that product that when I do buy it, I don't pay much attention to the price." C. "The different brands are almost identical. I always buy the cheapest." D. "I pinch pennies in buying other products, but like most people I feel I owe it to myself to get the best brand of this product."
The money supply is $10 million, currency held by the nonbank public is $2 million, and the reserve—deposit ratio is 0.2. Bank reserves are equal to
A) $1.6 million. B) $2 million. C) $4 million. D) $8 million.
Demand curves often do not remain stationary; they shift because of changes in other variables
a. True b. False Indicate whether the statement is true or false
In an economy with persistent inflation,
A. real GDP will grow faster than nominal GDP. B. nominal GDP will grow faster than real GDP. C. nominal and real GDP will grow at the same rate. D. nominal and real GDP will both fall.