Consider the following simplified sequence of exchanges. A logger sells an oak tree to a sawmill owner for $60. The sawmill mills it, and sells the boards to a woodworker for $80
The woodworker makes an oak bookcase out of the boards, and sells it to a retailer for $300. The retailer then sells you the bookcase for $500. As a result, GDP increases by A) $200.
B) $300.
C) $440.
D) $500.
E) $940.
D
Economics
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An economy with only a domestic sector is called:
A) a mixed economy. B) an open economy. C) a closed economy. D) a command economy.
Economics
Money is neutral in the model economy we discussed because
A) the money supply is exogenous. B) the money supply is intertemporal. C) prices are fully flexible. D) it is a barter economy.
Economics