What is the largest component of GPDI?
A) residential fixed investment
B) nonresidential fixed investment
C) inventory investment
D) consumer durables
B
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If the economy automatically tends toward full employment, then government stabilization policy
a. must be constantly in force. b. will be necessary only in recessions. c. will be necessary only in inflationary periods. d. will not be necessary.
Pete owns a shoe-shine business. His accountant most likely includes which of the following costs on his financial statements? (i) shoe polish (ii) rent on the shoe stand (iii) wages Pete could earn delivering newspapers (iv) interest that Pete's money was earning before he spent his savings to set up the shoe-shine business
a. (i) only b. (i) and (ii) only c. (iii) and (iv) only d. (i), (ii), (iii), and (iv)