All of the following are stages of the business cycle except:
Answer(s): D
A business cycle has four stages: the trough, recovery, peak, and recession. Acceleration is not one of the stages.
The two main variables that contribute to increases in real gross domestic product GDP derived from labor inputs are labor productivity and:
Real GDP increases when resource inputs and their productivity increase. Thus, to the extent that real GDP depends on labor inputs, real GDP equals total worker hours labor input) times labor productivity real output per worker per hour).
If the government of a country uses its foreign currency reserves to <List As its own currency in the foreign currency market, the effect is to <List B. domestic aggregate demand.
Answer(s): B
Aggregate demand is the amount of real domestic output that domestic consumers. Foreign buyers, governments, and businesses will want to purchase at each price level. One factor that changes aggregate demand is net export spending. Exchange rates are among the determinants of net export spending.When a government intervenes in the foreign currency market to purchase its own currency. it causes an appreciation of that currency. One result is that the trade balance will be affected. Exports will fall as domestic goods become more costly from the perspective of foreign consumers. Imports will rise as foreign goods become less costly for domestic consumers. Consequently, net exports will decline and domestic aggregate demand will also decline.
The sale of final goods is <List A> the gross domestic product, and the sale of intermediate goods is <List B> the gross domestic product.
The sale of final goods is included in. and the sale of intermediate goods is excluded from, GDP. The purpose of this treatment is to avoid double counting. The value of final goods already includes any intermediate transactions involved in their production.
Under the income approach, gross domestic product GDP) is measured as:
Answer(s): A
GDP is the total value of goods and services produced within the boundaries of a country. It may be measured using an expenditures approach or an income approach. Under the income approach. GDP equals all income derived from the production of the year's output, with an adjustment for net income earned abroad a positive or negative amount in theory). Two types of nonincome charges or allocations must be added to incomes wages, rents. interest, and profits).Depreciation reflects the consumption of Ford capital during the period. It is the part of the year's receipts that must be allocated to replace the machinery, plant. etc. used up in the production of GDP. Indirect business taxes, such as sales. Excise, and property taxes, are treated by businesses as a cost of production and form part of the total price of goods and Thus. they are not paid as wages. rents, interest, and profits.Accordingly, GDP may be measured as the sum of consumption of fixed capital, indirect business taxes, wages, rents, interest, and profits (proprietors' income. corporate taxes, dividends. and undistributed corporate profits), with an adjustment for net income earned abroad.
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