The purchase of a new machine to replace the one that is worn out is:
a. not included in GDP.
b. included in gross investment.
c. considered a personal consumption expenditure.
d. not included in GNP.
e. an increase in inventories.
b
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Which of the following would be added to U.S. national income?
A. An American consumer buying French wine B. An American business selling aircraft to British Airways C. A Swedish firm selling mobile phones to Americans D. A French firm buying a Swedish cellular phone
A demand shift is a change in the amount sellers want to supply at various prices.
Answer the following statement true (T) or false (F)
If demand for a product increases, ceteris paribus, the equilibrium:
A. price increases. B. price decreases. C. price remains unchanged. D. quantity decreases.
Since, according to the CPI, inflation between 1982 and 2015 was 137 percent,
A. a 100% increase in prices of farm products would cut farmers' real incomes by 50%. B. farmers' real incomes would fall only if the prices of farm products decreased. C. a 50% increase in prices of farm products would cut farmers' real incomes by 50%. D. unchanged prices for farm products would cut farmers' real incomes by 58%.