Which of the following is an explanation as to why fluctuations in real GDP have become less volatile in the United States since 1950?
A) The government has become less inclined to intervene to stabilize the economy.
B) Unemployment insurance and other government transfer programs have become more prevalent.
C) The government and the Federal Reserve have decreased regulation and scrutiny of the financial system.
D) Goods manufacturing has become a larger fraction of GDP.
B
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Choose the best statement
A) GDP equals aggregate expenditure and equals aggregate income. B) An increase in government purchases increases aggregate expenditure but does not change GDP. C) An increase in compensation of employees increases aggregate income but does not change GDP. D) GDP always equals aggregate expenditure and sometimes equals aggregate income.
A hot dog vendor on a street corner could increase the quantity of hot dogs her customers demand by 12 percent if she lowers the price of a hot dog 10 percent. The demand for the hot dogs is
A) cross elastic. B) arc elastic. C) unit elastic. D) elastic.