Author Question: Which of the following is a problem with using real GDP as a measure of economic well-being? a. It ... (Read 25 times)

mckennatimberlake

  • Hero Member
  • *****
  • Posts: 559
Which of the following is a problem with using real GDP as a measure of economic well-being?
 a. It fails to measure the value of leisure.
 b. It fails to measure the underground economy.
  c. It does not factor in externalities.
 d. all of the above

Question 2

In most derivations of the aggregate expenditures model, investment is assumed to be independent of real GDP. What would be the effect on the aggregate expenditures (AE) function if investment spending were positively related to income?
 a. The intercept of the AE function would rise.
  b. The slope of the AE function would become flatter.
  c. Both the slope and the intercept of the AE function would increase.
  d. The slope of the AE function would become steeper.
  e. The intercept of the AE function would increase, and its slope would become flatter.



fur

  • Sr. Member
  • ****
  • Posts: 309
Answer to Question 1

d

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

For a complete list of videos, visit our video library