In a Value Added Production Function Like the One Used

question 18

Multiple Choice

In a value added production function like the one used in the text, raw materials are

• A)counted as inputs in a production process.
• B)called intermediate goods.
• C)are counted in the final product of any production process as part of the value of output.
• D)called final goods.

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Definitions:

Inflation

An overall escalation in price levels and reduction in money's buying power.

Unemployment

The condition of being jobless despite an active search for employment.

Money Supply Growth

The increase in the total amount of monetary assets available in an economy at a specific time.

Unemployment Rate

The proportion of the workforce that is unemployed and actively seeking work.