HW1 - Homework 1-Intermediate Macroeconomics I Multiple...

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Homework 1 ---Intermediate Macroeconomics I. Multiple Choice (No points will be given if you offer no explanation) 1. In the circular flow model, the flow of dollars from firms to households is paid _____ and the flow of dollars from households to firms is paid _____. A) as wages and profits; for goods and services B) for value added; as imputed values C) in current dollars; in constant dollars D) as interest and dividends; for depreciation and taxes 2. When a firm sells a product out of inventory, GDP: A) increases. B) decreases. C) is not changed. D) increases or decreases, depending on the year the product was produced. 3. All of the following actions are investments in the sense of the term used by macroeconomists except : A) IBM's building a new factory. B) corner candy store's buying a new computer. C) John Smith's buying a newly constructed home. D) Sandra Santiago's buying 100 shares of IBM stock. 4. Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas
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HW1 - Homework 1-Intermediate Macroeconomics I Multiple...

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