Test 2 Practice Qs

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which of the following is not counted as part of gdp?
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Terms in this set (15)
which of the following is not counted as part of gdp?
the purchase of 100 shares of AT&T stock by your grandfather
In order to avoid double counting, statisticians just count the __________________.
final goods and services
to compare the gdp of 2 diff countries w/ 2 diff currencies, it is necessary to use ________________.
an exchange rate
a business cycle reflects changes in economic activity, particularly real GDP. the stages of a business cycle are:
expansion, peak, recession, trough
To achieve a high standard of living, a nation should:
promote economic growth
a nation can achieve higher economic growth if:
it devotes more resources to research and development.
An economy's rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren't identical.
per capita GDP
when the economy of a country is operating close to its full capacity?
cyclical unemployment is close to zero
in an AD/AS model, the point where the economy has excess capacity is called the:
keynesian zone of the AS curve
aggregate supply curves are ______________ for low levels of output, and _____________ for high levels of output
relatively flat, relatively steep
the _____________ holds that a rise in price level will make domestic goods relatively more expensive ____________ exports and _____________ imports- foreign price effect - discouraging - encouraging__________________ are economists who generally emphasize the importance of aggregate supply in determining the size of the macroeconomy over the _______________.neoclassical economists, long runIf Keynes' law applies during economic contractions and Say's law applies during economic expansion, how will the four goals of macroeconomics be affected?trade-offs and connections may differ in the short run and long runWhether the economy is in a recession is illustrated in the AD/AS model by how close the _____________________ is to the potential GDP line.equilibriumWhy is productivity growth considered to be the most important factor in the AD/ASAD/AS model?it shifts the AS curve in the long-term