In Double-Entry GDP Accounting

question 139

Multiple Choice

In double-entry GDP accounting,

• A)the value of output produced must equal the value of resource payments generated in producing that output
• B)government is not counted because most of government spending is for transfer payments
• C)payments to resources must equal the value of goods sold to households
• D)inventories are counted twice,once as investment and once as output
• E)intermediate goods are counted twice,once as a type of output themselves and once as part of final output

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Definitions:

Phillips Curve

A macroeconomic theory that suggests unemployment and inflation have a stable and inverse relationship, indicating trade-offs short-term policy-making.

Disinflation

A reduction in the rate of inflation, indicating a slowdown in the rate at which prices are rising.

Money Supply Growth

The rate at which the total amount of money available in an economy changes over a specific period of time.

Unemployment

Unemployment refers to the situation when individuals who are capable of working and are actively seeking employment are unable to find a job.