Productive activity in the underground economy:
a. results in an overstatement of actual income and production in the national accounting system.
b. consists of unrecorded cash transactions.
c. is estimated and included in the national income accounting system.
d. poses no problem for the measurement of gross domestic product.
e. does not affect GDP but is included in the value-added computations.
b
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During the 1990s, interest rates became ________ volatile than in the 1980s because the Fed used open market operations to ________ shifts in the IS and LM curves
A) more, reinforce B) less, offset C) more, offset D) less, reinforce
On the graph above, the wage level at point ________ might represent an efficiency wage
A) 2 B) 4 C) 6 D) 5
Refer to Figure a. Charlie and Joe both want to ride shotgun with their mother, so they play a game of rock-paper-scissors to determine who gets to sit in the front seat. In the table, -1 represents a loss, 1 a win and 0 a tie, and Joe's payoff is shown in the upper left-hand corner of each cell, while Charlie's appears in the lower right-hand corner. If Charlie knows Joe always throws scissors, what is Charlie's best response?
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A. Rock
B. Paper
C. Scissors
D. The answer cannot be determined from the information given.
Which of the following items is included in U.S. GDP?
a. final goods and services that are purchased by the U.S. federal government b. intermediate goods that are produced in the U.S. but that are unsold at the end of the GDP accounting period c. goods and services produced by foreign citizens working in the U.S. d. All of the above are included in U.S. GDP.