Firms
A) have no influence on the circular flow in a market economy.
B) purchase resources in the product market.
C) sell resources in the factor market.
D) sell goods in the product market.
D
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Which of the following will be counted as an expenditure in the measurement of GDP? (Assume that none of the transactions is concealed from the relevant authorities.)
A) the value of a used automobile that remains unsold on the dealer's lot B) purchase of a lamp at a neighborhood garage sale C) purchase, using foodstamps, of a loaf of bread D) payment by a parent to her child for doing household laundry E) purchase of flour by a bakery
The extent of the multiplier effect visible within a short time will be ____ the total effect indicated by the multiplier formula
a. significantly higher than b. equal to c. less than d. slightly higher than