The measurement of GDP handles underground production by
A) including the amount produced in this sector of the economy in exactly the same way that all other production is included.
B) omitting it because underground production is unreported to the government by the people involved.
C) adding it at fixed prices that change only infrequently.
D) adding an estimate of it because it is difficult to precisely measure underground production.
E) omitting it because, being illegal, it has no effect on the nation's total production.
B
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In the production function, Y=AF(K,N) variable A is
A. total factor productivity B. marginal output of labor C. the x-factor D. a measure of unemployment
If the reserve ratio is designated by "r," how much of a deposit can banks lend out?
A) (1 - r) B) r / (1 - r) C) 1 / r D) 1 / (1 - r)