The value of intermediate goods is not included in the calculation of GDP to avoid the problem of
a. depreciation.
b. inflation.
c. double counting.
d. transfer payments.
c
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When the Fed is ________ it is ________
A) adjusting the amount of money in circulation; issuing government bonds B) issuing government bonds; conducting monetary policy C) adjusting the amount of money in circulation; conducting monetary policy D) regulating the nation's financial institutions; conducting monetary policy
Suppose a price ceiling is set above the equilibrium price. Now suppose that policy makers decide to raise the price ceiling. This increase in the price ceiling will cause which of the following to occur?
A) The surplus in the market will increase. B) The surplus in the market will decrease. C) The shortage in the market will increase. D) none of the above