HW1-Answer Key(4)

False if there is a deflationary process then nominal

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Unformatted text preview: alse. If there is a deflationary process then nominal output can decrease. 5 Stony Brook University ECO 305 – Summer II, 2013 Arda Aktas 07/11/2013 ___________________________________________________________________________ 3. True. Part of the oil production is sold directly to consumers as a final good. 4. True. Part of the oil production is used by firms to produce different final goods. 5. True. The payment is in exchange for a service of safety. 6. False. The payment is in exchange for nothing. It is just a transfer. 7. True. (a) Final value (200) = the value of sales to consumers (200) (b) The value added(140)=the value of final goods(200) - the value of intermediate goods (60) (c) The household income (140) = wages (50) + profits (90=200-50-60) 6...
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This note was uploaded on 10/22/2013 for the course ECON 305 taught by Professor Yuanliu during the Summer '12 term at SUNY Stony Brook.

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