Which of the following would increase the investment component of U.S. GDP?
A. A French man purchases a vacation at a Disney theme park in France.
B. Disney World purchases tires for the monorail from a firm in Ohio.
C. You purchase shares of Disney stock.
D. You purchase a vacation at Disney World in Florida.
Answer: B
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At equilibrium, the market will clear, with no surpluses or shortages occurring.
Answer the following statement true (T) or false (F)
The scientific method refers to the process by which economists and other scientists:
A) plot graphs to illustrate relationships between different economic variables. B) develop models of the world and test those models with data. C) develop models to explain the past but not to predict the future. D) collect data for further use in research.
When current production of goods and services in an economy is greater than planned aggregate expenditure, _____
a. inventories of goods and services will increase b. firms will increase production to replenish depleted inventories c. businesses and households will increase planned aggregate spending d. the price level will automatically rise to restore equilibrium in the economy e. leakages must equal planned injections
Capital flight raises a country's real exchange rate
a. True b. False Indicate whether the statement is true or false