Which of the following activities is excluded from GDP, causing GDP to understate a nation's production?
A. The services of health care workers
B. The services of military personnel
C. Goods and services produced in the underground economy
D. The construction of new buildings
Answer: C
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If nominal GDP is $12 trillion, the price level is 120, and the quantity of money is $4 trillion, what is the velocity of circulation?
A) 3 B) 2.5 C) 30 D) 25
Answer the following statements true (T) or false (F)
1. The highest unemployment rate in the United States in recent years has been among adult females. 2. Part-time workers who want full-time employment but cannot find it are considered underemployed. 3. Increases in the federal minimum wage directly affects only a small percentage of U.S. workers. 4. Because of increases in the minimum wage, new entrants into the labor force find it easier to find employment. 5. Many economists believe that increases in the minimum wage tend to create a labor surplus.