After the terrorist attacks on September 11, 2001, governments within the United States raised expenditures to increase security at airports. These purchases of goods and services are
a. not included in GDP since they do not represent production.
b. not included in GDP since the government collects taxes to pay for them.
c. included in GDP since government expenditures on goods and services are included in GDP.
d. included in GDP only to the extent that the federal government, rather than state or local governments, paid for them.
c
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Which of the following shifts the demand curve for oranges?
A) disastrous weather that destroys about half of this year's orange crop B) a decrease in the price of a pound of bananas, a substitute in consumption for oranges C) an increase in the price of the fuel used to transport oranges to supermarkets D) great weather that produces a bumper orange crop this year
According to Figure 7-1, a decrease in the money stock
a. lowers the interest rate to r1. b. raises the interest rate to r2. c. leaves the interest rate at r0. d. None of the above