Among the following, which would not be considered part of the investment component of GDP?
A. Manufacturers’ equipment
B. Buying corporate stock
C. New houses
D. Business structures
Answer: B
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Does the quantity theory correctly predict the effects of money growth on inflation?
What will be an ideal response?
_____ believe that the primary causes of the Depression were autonomous declines in aggregate demand initiated by shocks to the IS curve
a. Monetarists. b. classical economists. c. early and late Keynesians. d. early Keynesians only.
As opposed to earlier crises, in the economic crisis of 2008-2009, the initial inability to pay came from
a. lending institutions. b. firms and individuals. c. states. d. the U.S. federal government.
If government saving is negative (that is, if government is running a budget deficit), crowding out may occur. Crowding out could lead to all of the following EXCEPT
A) higher interest rate. B) decreased private saving. C) decreased quantity of investment. D) a smaller capital stock in the future.