Only final goods and services count in calculating the GDP.

Answer the following statement true (T) or false (F)

True

Intermediate inputs are left out of the GDP.

Economics

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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.

A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease

Economics

A creative response to regulations can be described as

A. totally conforming to the law. B. completely ignoring the law. C. conforming to the letter of the law but undermining its spirit. D. none of these.

Economics