Al's Aluminum Company sells $1 million worth of aluminum to Shiny Foil Company, which uses the aluminum to make aluminum foil. Shiny Foil Company sells $4 million worth of aluminum foil to households. The transactions just described contribute how much to GDP?

Jim Brown would like to work, but has not looked for work in the past four weeks because he does not believe any jobs are available. In the official employment statistics, Jim is classified as:

A. out of the labor force. B. underemployed. C. employed. D. unemployed.

When RBC economists compare the correlations in their models to the data, what are they looking at?

A. The amount of random variation in economic variables B. The degree to which different economic variables move together C. The strength of procyclicality of different variables D. The degree to which variables lead output over the business cycle