Question

In: Economics

You are to explain your answer to whether the statement is true or false? 1. Gross...

You are to explain your answer to whether the statement is true or false?

1. Gross domestic product measures the value of all goods and services produced in an economy during a period of time.

2. The unemployment rate only goes down when the economy is in recovery.

3. The business cycle has four phases, depression, recession, recovery and expansion.

4. People who are discouraged workers are included in the unemployment rate.

5. The consumer price index is an accurate measure of the change in the purchasing power of money.

6. Consumption is the largest component of Gross Domestic product as measured by the income approach.

7. Absolute advantage is the same as comparative advantage.

8. Money is a social institution that eliminates the need for a double coincidence of wants.

Solutions

Expert Solution

Answer option)false

It is false that Gross domestic product measures the value of all goods and services produced in an economy during a period of time

The reason is that Gross domestic product measures market value of final goods and services produced during an accounting year.

Answer option) false

It is false that The unemployment rate only goes down when the economy is in recovery.Unemployment tends to rise quickly, and often remain elevated, during a recession.

Answer option) true

It is true that The business cycle has four phases, depression, recession, recovery and expansion.

Answer option)false

It is falsePeople who are discouraged workers are included in the unemployment rate.

Even though they would like a job, discouraged workers are not counted as unemployed or included in the unemployment rate. They are counted in the real unemployment rate. Discouraged workers do not include those who have dropped out of the labor force for other reasons.

Answer Option)true

The consumer price index (CPI) is a measure of the average change over time in the prices paid by consumers in urban households for a basket of goods and services. ... The CPI is calculated by taking price changes for each item in the predetermined basket of consumer goods and services and then averaging them.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

State whether the following statement is True, False, or Uncertain. Be sure to explain your answer....
State whether the following statement is True, False, or Uncertain. Be sure to explain your answer. The marginal propensity to consume from a permanent parallel upward shift in the production function is smaller than the marginal propensity to consume from a temporary parallel upward shift in the production function.
True or False. Indicate whether the statement is true or false. If false, explain in the...
True or False. Indicate whether the statement is true or false. If false, explain in the space provided the statement why it is false, or simply correct the statement. Smooth muscle contraction is regulated by the autonomic nervous system. During exercise, the sympathetic nerves that innervate the smooth muscles of bronchioles and arterioles regulate the contraction of these smooth muscles to increase ventilation and cardiac output. 2. Multiple choice: Choose one best statement. An infant born prematurely has neonatal respiratory...
Say whether you think the statement is true, false, or uncertain; and support your answer in...
Say whether you think the statement is true, false, or uncertain; and support your answer in a few lines. 1. Consider two similar economies hit by the same temporary negative supply shock. In the economy with the more credible monetary policy, there will be smaller increases in both ináation and the real interest rate. 2. If the public believes the commitment to a nominal anchor to be credible, the e§ect of a negative aggregate demand shock is for short-run aggregate...
Say whether you think the statement is true, false, or uncertain; and support your answer in...
Say whether you think the statement is true, false, or uncertain; and support your answer in a few lines. 1. The real business cycle model suggests that, with aggregate demand unchanged, increases in output would be associated with a decline in inflation. 2. What is the divine coincidence? When and why does it not hold true? 3. Suppose the economy is in a long-run equilibrium when a temporary, favorable aggregate supply shock occurs. Using graphs, show what happens to bring...
.Explain whether the following statement is true or false and state the correct answer explaination: 1....
.Explain whether the following statement is true or false and state the correct answer explaination: 1. Profit growth can be defined as the rate of return the firm makes on its invested capital 2. A joint venture is one firm licenses its intellectual property to another firm 3. Write different ways to enter a foreign market. If you were asked by a pharmaceutical company to design a market entry strategy, clearly showing which you would use and justify your choice...
Explain whether the given statement is true, false or uncertain. Start your answer by selecting one...
Explain whether the given statement is true, false or uncertain. Start your answer by selecting one of the options – “True”, “False” or “Uncertain” and then provide arguments to justify your selection (be brief and concise and present your arguments in 100 or less words). You need to ensure your assumptions are clear, reasonable and explicit if making any. Question: Workers and employers in economy expected 3% inflation rate for 2015 but actual inflation turns out to be 5%. Kylie,...
True/False. For each part, explain your answer regardless of whether it is true or false. Financial...
True/False. For each part, explain your answer regardless of whether it is true or false. Financial intermediaries are typically willing to put more effort into monitoring than individual investors.
Identify whether the following statement is true or false. Circle your answer choice. If the answer...
Identify whether the following statement is true or false. Circle your answer choice. If the answer is false, correct the statement to make it true. True / False The solubility of silver hydroxide will increase in a basic solution. True / False An indicator is a weak organic acid that changes color in solution depending on the protonation state True / False Solubility product constants are large for insoluble salts. True / False The equation that will correspond to the...
State whether the following statement is/are true or false and justify your answer. (1) Statistics consist...
State whether the following statement is/are true or false and justify your answer. (1) Statistics consist of information that is collected from specific source on a topic of interest. (2) A population is a collection of items, individuals or elements. (3) Inferential statistics is the art and science of collecting, presenting and interpreting data. (4) A sample is a fraction or a subset of the population. (5) A qualitative variable is a variable that measures qualitative characteristics.
State whether the following statements are true or false, and explain your answer if you judge...
State whether the following statements are true or false, and explain your answer if you judge the statement to be false (a statement must always be true to be considered true).             i) In an efficient market all investments should have the same long-run average return             ii) In an efficient market all investors should have the same long-run average return             iii) Stocks exhibiting positive or negative abnormal returns indicates market inefficiency iv) Evidence of irrational behavior on the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT