ECO202HBF13MT1Key

Whichofthefollowing statementsisaccurate i

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview:   12. Whichofthefollowingstatementsistrue? a. Short ­runeconomicfluctuationsaremadeworsebecausepricesareflexible. b. Short ­runeconomicfluctuationswouldbelesssevereifpriceswereinflexible. c. Ifpriceswerefullyinflexible,therewouldbenoshort ­runeconomicfluctuations. d. Ifpriceswerefullyflexible,therewouldbenoshort ­runeconomicfluctuations causedbydemandshocks. Answer:D 4 13. In 2007, Corny Company grows and sells $2 million worth of corn to Tasty Cereal Company, which makes corn flakes. Tasty Cereal Company produces $6 million worth of corn flakes in 2007, with sales to households during the year of $4.5 million. The unsold $1.5 million worth of corn flakes remains in Tasty Cereal Company’s inventory at the end of 2007. How much do the transactions just described contribute to the GDP for 2007? a. $4.5 million b. $6 million c. $6.5 million d. $8 million Answer:B  14. Suppose there...
View Full Document

Ask a homework question - tutors are online