The investment demand curve shows the amount businesses spend for investment goods at different possible:

Suppose the Fed buys government securities from a commercial bank. Why is there a multiplier effect on the quantity of money?

What will be an ideal response?

Economists generally use GDP to measure a nation's total output because it is

a. equal to the sales value of all transactions conducted during a period and thus can be easily calculated. b. the best available measure of the true costs of producing consumer goods. c. unaffected by changes in the prices of products over time. d. a relatively reliable measure of the value of all final product goods and services produced during a specific time period.