Which of the following would not be considered investment spending in the Nation

Question

Which of the following would not be considered investment spending in the National Income Accounts? a. Construction of an automobile factory b. the purchase of a new drill press by Ajax manufacturer c. accumulation of inventories experienced by a shoe manufacturer d. the purchase of IBM stock. 28. The annual rate of inflation is 10% yet your real income increased. Which of the following must be true? a. Your purchasing power has decreased b. Your dollar/nominal income has fallen by less than 10% c. The value in the base year is 100. d. It accurately reflects each individual's rate of inflation. 30. U.S, GDP for 2014 does not include which of the which of the following transactions? a. 2014 construction projects in NJ that rebuild the rebuild the infrastructure after storm damage. b. Apples grown in New England in 2014 but sold overseas c. The value of housework/home production during 2014. d. Child-care services in spring field Provided by a licensed center in 2014. 31. Which of the following is NOT an economic cost of high inflation? a. menu costs b. shoe-leather costs c. opportunity costs d. Unit-of-account costs

Explanation / Answer

Part II.

a.

1. Tom is employed bacuse he currently selling his labor hours.

2. Now Tom is not in the labour force. He lost his job but not searching for new one.

3. Erica is structurally unemployed. As her perticular that skill is not demanded in the market.

4.She is frictionally unemployed as she is searching for job.

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