In the simple circular-flow diagram, with households and firms, GDP can be computed
a. as the total payments for factors of production made by households
b. as the total expenditures by households on goods but not services, since services are intangible.
c. as the total expenditures by households on goods and services.
d. as the total expenditures by households on goods and services, less taxes paid.
c
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A continuing increase in the growth of the money supply is likely followed by
A) a recession. B) a depression. C) an increase in the price level. D) no change in the economy.
If a country experiences capital flight, which curves shift right?
a. the demand for loanable funds and the demand for its currency in the market for foreign-currency exchange b. the demand for loanable funds and the supply of its currency in the market for foreign-currency exchange c. the supply of loanable funds and the demand for its currency in the market for foreign-currency exchange d. the supply of loanable funds and the supply of its currency in the market for foreign-currency exchange