A country reports that unplanned inventories increased during 2012. The increase in unplanned inventories leads to
A) firms decreasing production, which decreases GDP.
B) actual aggregate expenditure being different than real GDP.
C) consumers increasing their consumption expenditure, which increases GDP.
D) firms increasing production, which increases GDP.
E) the government decreasing production, which decreases GDP.
A
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In the long run, the effect of a reduction in the money supply is to
A) decrease both the price level and real Gross Domestic Product (GDP). B) decrease real Gross Domestic Product (GDP) only. C) decrease the price level and increase real Gross Domestic Product (GDP). D) decrease the price level only.
Paying into a pension fund while you are earning wages and salaries is equivalent to
A. borrowing money. B. lending money. C. withdrawing from a savings account. D. paying off debt.