Which of the following values of the Lerner Index indicates the greatest amount of market power?

New money is created in the U.S. economy by

A) increased federal government expenditures. B) banks that create checkable deposits. C) the U.S. Treasury. D) U.S. Department of Mint. E) the U.S. Congress.

A landlord rents his rat-infested apartment for $700 per month for a total of twelve months this year. What happens to GDP?

A) It increases by $8,400. B) It increases by the difference between the rent charged and the price of any maintenance and repairs. C) It decreases by $8,400. D) Nothing.