Compared to high-income developed countries, the per person income levels of poorer less developed countries are somewhat understated because
a. the GDP figures omit the production within the household sector, which is generally larger in the high-income countries.
b. the GDP figures omit the production within the household sector, which is generally larger in the poorer countries.
c. the GDP figures omit net exports, which are generally larger in the high income countries.
d. the GDP figures omit net exports, which are generally larger in the poorer countries.
B
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Fully anticipated monetary policy actions cannot alter either the rate of unemployment or the level of real GDP. This statement is
A) the nonaccelerating inflation rate of unemployment theory. B) discretionary policy making. C) the policy irrelevance proposition. D) the Phillips curve.
Monetarists' preference for reduced-form models is based on their belief that
A) reverse causation is a problem. B) structural models may understate money's effect on economic activity. C) money supply changes are always endogenous. D) monetary policy affects only investment spending.