If the central bank of Orangeland pursues an expansionary ...

[student77]

If the central bank of Orangeland pursues an expansionary monetary policy, ________.
 
  A) its labor supply will fall
  B) the price level in Orangeland will fall
  C) the demand for labor in the economy will increase
  D) the interest rate in Orangeland will rise

Question 2

One reason the total sum of the income categories does not equal GDP is that
 
  A) taxes are generally larger than subsidies and the depreciation of capital is negligible.
  B) GDP values goods and services at retail prices and the income approach values them at wholesale cost.
  C) people do not spend all their income, so the value of consumption expenditure is less than the value of wages.
  D) GDP does not include depreciation, which is part of the income categories.
  E) GDP values goods and services at market prices and the income approach values them at factor cost.

[memslove]

Answer to Question 1

C

Answer to Question 2

E

[student77]

Excellent

[LVPMS]

Gracias!