ECO 561 Final Exam: ECO 561 - If a firm in a purely competitive industry
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23) GDP understates the value of<br />
output produced by an economy<br />
because it<br />
A. <strong>in</strong>cludes transactions that do not<br />
take place <strong>in</strong> organized markets, such<br />
as home cooked meals<br />
B. <strong>in</strong>cludes environmental degradation<br />
caused by <strong>in</strong>creased output production<br />
C. excludes value added from the<br />
underground economy, such as tips<br />
taken under the table<br />
D. excludes the value of the wages<br />
and benefits of government employee<br />
24) Other th<strong>in</strong>gs equal, a<br />
decrease <strong>in</strong> the real <strong>in</strong>terest rate<br />
will<br />
A. shift the <strong>in</strong>vestment demand<br />
curve to the right<br />
B. shift the <strong>in</strong>vestment demand<br />
curve to the left<br />
C. move the economy upward<br />
along its exist<strong>in</strong>g <strong>in</strong>vestment<br />
demand curve<br />
D. move the economy downward<br />
along its exist<strong>in</strong>g <strong>in</strong>vestment<br />
demand curve<br />
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