In the first half of 2011, automobile sales in the United States were lower than they were in the first half of 2010
The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses.
A) consumption; investment B) investment; consumption
C) durable goods; nondurable goods D) nondurable goods; durable goods
A
You might also like to view...
Which of the following happens if the Fed buys bonds from a private bank?
A) The Fed's total liabilities remain unaffected. B) The private bank's total assets remain unchanged. C) The private bank's composition of assets remain unchanged. D) The Fed's total assets decrease.
Some economists believe that financing deficit spending by increasing taxes will lead to a lower level of national consumption and a higher level of national savings than deficit spending. The reason is
A) that people do not realize that taxes have increased also. B) the interest rate on the debt will increase. C) people will forgo private consumption now as society substitutes government goods for private goods. D) people believe that they can consume the government provided goods and have future generations pay the bill.