Trade allows a country to consume outside its production possibilities frontier

When the Federal Reserve decreases the money supply, it generally does so by purchasing bonds

Indicate whether the statement is true or false

Answer the following questions true (T) or false (F)

1. GDP is not a complete measure of well-being. 2. The size of the underground economy as a percent of GDP is larger in the United States as compared to poorer countries such as Zimbabwe. 3. If an increase in crime causes households to spend money on police and security systems, GDP will rise.