The unreported or illegal production of goods and services in the economy that is not counted in GDP is termed:

Assume the federal government raises taxes (a contractionary fiscal policy). If the tax increase affects AS and AD equally, then real GDP will ________ and the price level will ________

A) decrease; decrease B) increase; be unchanged C) increase; increase D) decrease; be unchanged E) increase; decrease

Which of the following is false?

a. People looking for full-time work who grudgingly settle for a part-time job are counted as employed, even though they are only "partly" employed. b. Some people working in the underground economy could be counted in labor statistics as unemployed, while others may be counted as not in the labor force. c. Unemployment rates can be quite different across different segments of the population, as well as varying substantially over time. d. None of the above are false; all are true.