QUESTION 6 Intermediate goods are counted in GNP but not in GDP. are counted in GDP,...

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Answer 1

Answer #1

Q - 6

The correct answer is the last option.

Intermediate goods value gets consumed in final goods that are included in GDP. Hence to avoid double counting, they are not included in GDP.

Q - 7

The correct answer is the first option: right; raises

The increase in real interest rate increases the labor supply due to inter - temporal substitution effect. This leads to a shift in the labor supply curve to right which decreases wage and increases output in the market.

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Answer 2

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QUESTION 6 Intermediate goods are counted in GNP but not in GDP. are counted in GDP,...

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QUESTION 6 Intermediate goods are counted in GNP but not in GDP. are counted in GDP,...