If Net Domestic Product (NDP) is $100 less than Gross Domestic Product (GDP), we know that
A. inventories increased over the year.
B. inventories decreased over the year.
C. depreciation equals $100.
D. net investment equals $100.
Answer: C
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A) The marginal social cost curve lies to the right of the supply curve. B) The marginal social cost curve lies to the left of the supply curve. C) The marginal social benefit curve lies to the right of the demand curve. D) The marginal social benefit curve lies to the left of the demand curve.
According to the simple circular flow concept, whenever planned investment is less than planned saving
a. total output and/or prices rise. b. total output and/or prices fall. c. prices fall and total output rises. d. prices rise and total output falls.
Explain how the Fed would use its four tools to decrease and to increase the money supply
A moral hazard problem occurs before a loan is made, and the adverse selection problem occurs after a loan is made
Indicate whether the statement is true or false