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Unformatted text preview: 3) trend-line would indicate the A) distribution of income. B) inflation rate. C) business cycle. D) unemployment rate. E) real long-run growth rate. P 4) Suppose Honest Rob's Used Cars buys a used car for $2 000 and resells it for $3 000. The result of Honest Joe's transaction is to A) leave the value of national product unchanged. B) increase the value of national product by $1 000. C) decrease the value of national product by $1 000. D) increase the value of national product by $3 000. E) decrease the value of national product by $3 000. 5) To calculate the economy's output gap A) real national incomes should is used. B) the unemployment rate should be subtracted from the inflation rate. C) nominal national incomes is used. D) actual income should be subtracted from potential national income. E) the percentage change in the general price level between the first and second period is used. 4)...
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This note was uploaded on 01/15/2012 for the course ECON 104 taught by Professor Peter during the Summer '09 term at Camosun College.
- Summer '09
- National Income