This year Gus purchased a used 1972 vehicle from Wee-Rob-U Auto Sales. The dealer paid $500 for it yesterday, and sold it to Gus for $3500. In principle, what happens to GDP?
A) Nothing, because the vehicle was already accounted for in 1972.
B) Nothing, because Gus was ripped off.
C) It increases by $3000.
D) It increases by $3,500.
E) It increases by $6,500.
C
Economics
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a. True b. False Indicate whether the statement is true or false
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The IS curve shows the combinations of output and the real interest rate for which
A. the goods market is in equilibrium. B. an increase in output will cause the market-clearing interest rate to be bid up. C. the labor market is in equilibrium. D. the financial asset market is in equilibrium.
Economics