Which of the following correctly states the relationship between GDP and GNP for the U.S.?
a. GDP equals GNP minus the net income of foreigners.
b. GDP equals GNP plus the net income of foreigners.
c. GDP equals GNP minus indirect business taxes.
d. GDP equals GNP.
B
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Refer to the scenario above. Which of the following is true if David's maximum willingness to pay for the good falls to $380?
A) James will win the auction. B) Rachel will not take part in the auction. C) The owner of the good will earn the same average revenue. D) David will win the auction.
In the long run, if the money supply increases: a. most of the resulting rise in nominal GDP will be a result of increases in the exchange rate. b. most of the resulting rise in nominal GDP will be a result of increases in the price level. c. most of the resulting rise in real GDP will be a result of increases in the price level
d. most of the resulting rise in real GDP will be a result of increases in the interest rate. e. most of the resulting rise in real GDP will be a result of increases in aggregate expenditure.
The price of a gallon of gasoline in Bonland is $3.20. However, just before the election, the government decides to fix the price of gasoline at $2.80 per gallon. This is an example of a ________
A) positive externality B) negative externality C) price floor D) price ceiling
Which one of the following is NOT a part of the M1 definition of money?
A) paper currency (i.e., Federal Reserve notes) B) coins C) savings accounts D) checkable and debitable accounts