Answer the following statements true (T) or false (F)
1) The "sticky price" model is the only one used by macroeconomists.
2) (Consider This) The term "economic investment" refers only to money spent purchasing newly
created capital goods such as factories, tools, and warehouses.
3) (Consider This) If a farmer purchases 10 acres of farmland from a neighboring farmer, this
would be considered an economic investment.
4) (Consider This) If Ford Motor Company purchases factory equipment previously used by
General Motors, this would be considered an economic investment.
1) F
2) T
3) F
4) F
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Which of the following best describes a nation's Gross Domestic Product?
A) the market value of all goods and services produced in the economy, including intermediate goods B) the market value of all goods and services less depreciation C) the constant dollar value of all goods produced in the economy during a year period D) the total market value of all final goods and services produced in the economy during a year
If your real income in base year prices is $50,000, then if the CPI is 170, what is your nominal income?
A) $85,000.00 B) $29,411.76 C) $70,000.00 D) $50,000.00 E) $71,428.57