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General Motors Corporation (a U.S.-based firm) produces a Saab vehicle in Sweden, and sells it in the United States. In which country's GDP is it included?
Sweden because it was produced there.
The major difference between nominal GDP and real GDP is that
nominal GDP is the current market value and real GDP has been adjusted for inflation.
Potential GDP is an estimate of the economy's ability to produce goods and services if the
labor force is fully employed, or if there is no cyclical unemployment
An increase in the capital stock has the same effect on the production function as an increase in
When you subtract the expected rate of inflation from the nominal rate of interest, you calculate the
real rate of interest
If ten years ago the price of a movie ticket was $5 and the average hourly wage was $10, and today the price of a movie ticket is $8 and the average hourly wage is $20, then
movies are now relatively cheaper in terms of work hours
One reason given for the U.S. productivity slowdown in the period from 1973-1995 was
increasing energy prices
The federal government's principal tool in altering consumer spending is changing
personal income tax rates
If the MPC is .80, then a change in disposable income of $60 billion will lead to a change in consumption of
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