What is the relationship between the gross domestic product of a country and its gross national product?
What will be an ideal response?
Gross domestic product of a country is the final value of all goods and services produced within the borders of a country, while gross national product is the final value of all goods and services produced by a country's factors of production during a particular year. Therefore, in order to obtain gross national product, the production of domestic factors of production within foreign borders needs to be added and the production of foreign factors of production within domestic borders needs to be subtracted from gross domestic product.
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In the figure above, consumer surplus at the price that maximizes the profit for an unregulated, single-price monopolist is the area of
A) rectangle 0heb. B) triangle abe. C) triangle eig. D) rectangle 0hgd.
To offset the effect of households and firms deciding to hold more of their money in checking account deposits and less in currency, the Federal Reserve could
A) raise bank taxes. B) sell Treasury securities. C) raise government spending. D) lower the required reserve ratio.