Which does not contribute directly to the production of the domestic output of an economy?

A. A full-time student.
B. An insurance agent.
C. A soldier.
D. A police officer.

Answer: A

Economics

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The present value of $525 received one year from today, assuming an annual rate of return of 5 percent is

a. $551.25 b. $525 c. $500 d. none of the above

Economics

When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline

Economics