The GDP deflator:
A. may include goods produced abroad.
B. measures price changes for everything produced in the country.
C. is computed using the quantities that are consumed in the economy each year.
D. is the same as PPI.
Answer: B
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Which of the following is true of leakages and injections in the circular flow model? a. Leakages minus injections equal gross domestic product (GDP)
b. Injections minus leakages equal gross domestic product (GDP). c. Leakages minus injections equal zero in equilibrium. d. Leakages must be less than injections for an economy to be in equilibrium. e. Leakages must be greater than injections for an economy to be growing.
The aggregate demand curve of an economy illustrates the relationship between _____
Fill in the blank(s) with the appropriate word(s).