If real GDP is $21 trillion, consumption is $14 trillion, planned investment is $4 trillion, government purchases are $4 trillion, net exports are -$1 trillion, then the unintended inventory adjustment is:
a. -$2 trillion.
b. -$1 trillion.
c. $0.
d. $1 trillion.
c
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In a small country, the net national cost of tariff protection is equal to the reduction in consumer surplus minus
A) the gain to foreigners. B) the increase in government revenue and the increase in producer surplus. C) the increase in government revenue. D) the increase in producer surplus. E) the efficiency loss and the consumption side loss.
Supply-side economic policies seek to
A) raise interest rates through contractionary monetary policy. B) increase federal government expenditures. C) increase consumption expenditures by increasing taxes. D) increase saving and investment using tax incentives.
A price ceiling set below the equilibrium price is binding
a. True b. False Indicate whether the statement is true or false
Which of the following statements is false?
A) The market value of all nonmarket goods is omitted from GDP. B) The sale of used goods is omitted from GDP. C) The market value of a person mowing his or her own lawn is omitted from GDP. D) If a good is produced but not sold, it is included in GDP.