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Unformatted text preview: 1 1 Measuring the Economy Key Points Circular Flow NIPA GDP concepts Real vs. Nominal GDP Deflators Welfare Comparisons 2 In the News? 3 Fiscal Policy Which of the following is true of fiscal policy? A. An increase in government spending will raise taxes which partially offsets the effects of the spending increase B. An increase in government spending will increase the money supply further stimulating the economy C. An increase in government spending will increase aggregate demand and output D. An increase in government spending will reduce interest rates and thus increase aggregate demand E. All ARE true 2 4 Course Issues Check Gradebook in Sakai Future HW Clicker Points - now Investment Game 0,1 quiz question Results Quiz 1 Hw 3 Videos - $1 Quiz 2 Thursday Assignment 4 Thursday Wiki 5 6 What is Nominal GDP? Expenditures on Newly Produced final goods and services valued at market prices by factors located in U.S. 1. Total flow 1. Stock vs flow 2. newly produced 3. final goods and services 4. valued at market prices 1. Why? 5. Factors located in U.S....
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- Summer '08
- Fiscal Policy