Calculating the value of an economy is more complex than just adding up the value of every single thing that is produced because that would lead to:
A. overcounting, as the value of intermediate products would be counted twice.
B. overcounting, as there is a mark-up in everything that is sold.
C. undercounting, as most goods are not sold in retail markets.
D. undercounting, as only observable markets can be recorded.
A. overcounting, as the value of intermediate products would be counted twice.
You might also like to view...
During a period of inflation, the Fed is likely to:
A. sell government securities to banks in order to reduce the amount of loanable funds. B. buy government securities from banks in order to reduce the amount of loanable funds. C. cut the discount rate to increase the affordability of loanable funds. D. cut the required reserve ratio in order to reduce the amount of excess reserves banks have to loan out.
Major macroeconomic issues include differences across countries in all of the following EXCEPT:
A. economic growth rates. B. inflation rates. C. infant mortality rates. D. unemployment rates.