This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: At a long-run macroeconomic equilibrium, real GDP is always equal to potential GDP. Indicate ... (Read 93 times)

captainjonesify

  • Hero Member
  • *****
  • Posts: 543
on: Jun 29, 2018
At a long-run macroeconomic equilibrium, real GDP is always equal to potential GDP.
 
  Indicate whether the statement is true or false

Question 2

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so, how?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

rekilledagain

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

We would double count if we counted directly the value of intermediate goods and services, because their value shows up in the value of the final goods and services in which they are a part.


captainjonesify

  • Member
  • Posts: 543
Reply 2 on: Jun 29, 2018
:D TYSM

adammoses97

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Potential Constitutional Challenges to Loitering, Panhandling, and Sit-Lie Laws Potential Constitutional Challenges to Loitering, Panhandling, and Sit-Lie Laws
Chemical equilibrium and the law of mass action. Chemical equilibrium and the law of mass action.
Brush off the back. Apply several long brushing strokes from head to hips to finish the session. Brush off the back. Apply several long brushing strokes from head to hips to finish the session.
Potential gas reserves have increased significantly with the discovery of new shale gas formations Potential gas reserves have increased significantly with the discovery of new shale gas formations
Action Potential in a Ventricular Fiber Action Potential in a Ventricular Fiber
Demographic transition model for changes in population growth rates and sizes, correlated with long- Demographic transition model for changes in population growth rates and sizes, correlated with long-
Video: Introduction to Cystic Fibrosis

For a complete list of videos, visit our video library