GDP measures the output produced within a nation's borders

Which of the following items is included in U.S. GDP?

a. the estimated value of production accomplished at home, such as backyard production of fruits and vegetables b. the value of illegally-produced goods and services c. the value of cars and trucks produced in foreign countries and sold in the U.S. d. None of the above is included in U.S. GDP.

Answer the following statements true (T) or false (F)

1) The short-run aggregate supply curve is vertical and the long-run aggregate supply curve is horizontal. 2) The short-run aggregate supply curve shifts to the left when nominal wages rise in response to price level increases. 3) In the extended AD-AS model, the long-run aggregate supply curve is vertical. 4) Demand-pull inflation and cost-push inflation are identical concepts because both involve lower unemployment rates and rising prices. 5) The Phillips Curve suggests an inverse relationship between increases in the price level and the level of employment.