To avoid multiple counting in national income accounts:
A. Only final goods and services should be counted
B. Intermediate goods and services should be counted
C. Both final and intermediate goods and services should be counted
D. Primary, intermediate, and final goods and services should be counted
A. Only final goods and services should be counted
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In the long run,
A) unemployment is at its natural rate. B) GDP > potential GDP. C) LRAS and SRAS lie on the same line. D) the inflation rate is zero.
In the New Keynesian model, if there is a decrease in anticipated future total factor productivity, then
A) there should be no change in monetary or fiscal policy. B) the central bank's interest rate target should be increased. C) government spending should fall, and the central bank's interest rate target should rise. D) government spending should increase.
Since rent controls have been in effect in New York City, apartments have been more plentiful
a. True b. False Indicate whether the statement is true or false
Quantify the cost savings associated with a cost-effective abatement allocation achieved through trading.
Suppose two point sources are discharging phosphorus into Wisconsin’sFox River and face the following abatement costs for this pollutant: Point Source 1: TAC1 = 500 + 0.35(A1)2 MAC1 = 0.7A1 Point Source 2: TAC2 = 750 + 1.05(A2)2 MAC2 = 2.1A2, where A1 and A2 represent the abatement of phosphorus effluents in pounds by Source 1 and Source 2, respectively, and TAC and MAC are measured in hundreds of dollars. Assume that the state environmental authority has set the total maximum daily load (TMDL) for the Fox River. To achieve this limit, 40 pounds of phosphorus must be abated across the two point sources. Use this information to answer the following questions.