4. Not affect GDP because no current production.
a. Consumption increases because a refrigerator is a good purchased by a household.
b. Investment increases because a house is an investment good.
c. Consumption increases because a car is a good purc
2. Ifnominal interest rates increase ﬁ'om 8 percent to 10 percent while inﬂation increams from 5 percent to 8
a. the real interest rate falls from 3% to 2%.
b. the real interestrate rises from 4% to 2%.
c. the real interest rate falls
1. The increase in international trade in the United States is partly due to
a. improvements in transportation.
b. advances in telecommunications.
c. increased trade of goods with a high value per pound.
d. All of the above are correct.
?) Endogenous growth theon
A) states that the rate of technological change is determined outside the working of the market
B) does not adequately explain the factors that determine productivity.
CZ] states that the rate of technological change is
Ch 15 Homework
The bureau of labor statistics announced that in April 2010 of all adult Americans 139,455,000
were employed 15,260,000 were unemployed and 82,614,000 were not in the labor force use this
information to calculate
a-the adult population
1. What is the difference between monetary policy and fiscal policy?
The Federal Reserve Bank conducts U.S. monetary policy. It consists of policies to affect the financial side of the
economy-most notably the supply of money in the econ