economics

posted by .

Explain what happens to the official measure of GDP in each of the following situations.
a. air quality improves significantly throughout the US but there are no effects on aggregate production or on market prices of final goods and services.
b. The US government spends considerably less on antipollution efforts this year than it did in recent years.
c. The quality of cancer treatments increases, so patients undergo fewer treatments, which hospitals continue to provide at the same price per treatment as before.

  • economics -

    a) no change in GDP
    b) GDP rises
    c) GDP falls

  • economics -

    a) no change
    b) GDP falls as the U.S. Government spends less because government spending is a component of GDP
    c)GDP falls

  • economics -

    a,b,a

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    One supply-side measure introduced by the Reagan administration was a cut in income tax rates. Use an aggregate demand-supply diagram to show what the effect was intended. What might happen if such a tax cut also generated a change …
  2. Economics

    Why is it that the people responsible for pensions use the CPI as an indicator for inflation rather than the GDP deflator?
  3. Economics

    3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short run?
  4. Economics

    In the Monetary policy transmission mechanism, explain what could go wrong between the following points 1. Change in the monetary policy and Change in the money supply 2. Change in the money supply and Change in the aggregate demand …
  5. Economics

    Hopefully you can help me and I need this ASAP. I need this by tomorrow in the morning. You answer the questions if it decreases increases, expands or not. Also, can you explain it too?
  6. econ

    Consider the following data about the goods market in a hypothetical closed economy. Assume that government expenditure is constant at $200 million. Also assume that there is equilibrium in the goods market at all times. Some of the …
  7. economics

    3. Consumer spending on durables falls, draw a graph to analyze the effects of this change in real interset. 4. The Canadian demand for Mexican Pesos is downward sloping and supply of pesos is upward sloping. Assume a system of flexible …
  8. economics

    Use an aggregate demand and supply diagram to explain how each of the following scenarios affects the equilibrium price level and aggregate output. Consider first the short-run, then the long-run equilibrium for each scenario. a) Consumers …
  9. Economic

    1) GDP does not include intermediate goods because a. that would understate the true size of GDP. b. intermediate goods are not useful to consumers. c. that would count the value of intermediate goods twice. d. intermediate goods are …
  10. Economics

    Concern about international crisis has caused consumers to save their money and postpone big purchases. What is the effect on aggregate demand and aggregate supply?

More Similar Questions