Suppose that business firms spend $500 million on new capital equipment this year. Of this $500 million, $300 million was spent on domestically produced capital and $200 million was spent on foreign-produced capital
All else equal, these transactions contribute ________ to GDP. A) $0
B) $200 million
C) $300 million
D) $500 million
E) $800 million
C
Economics
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A price ceiling set above the equilibrium price causes a surplus in the market
a. True b. False Indicate whether the statement is true or false
Economics
When the Federal Reserve increases its target rate of inflation, it will set a ________ real interest rate at every inflation rate and the aggregate demand curve will ________.
A. lower; shift to the right B. higher; shift to the left C. lower; shift to the left D. higher; shift to the right
Economics