Elucidate why intermediate goods and services included

Reference no: EM1333641

Effect of Changes in Macroeconomic variables to the Economy

Describe the various components of fluctuations in economy activity over time. Because economic activity fluctuates, how is long-term growth possible?

Why do economists pay more attention to national economies than to state or provincial economies?

How did the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affected short- and/or long-term productivity in the United States?

How do the aggregate demand and aggregate supply curves differ from the market curves?

How is the U.S. budget deficit related to the foreign trade deficit?

Why would the following investment expenditures increase as the interest rate declines?
a. Purchases of a new plant and equipment
b. Construction of new housing
c. Increased inventories

Explain why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly?

Reference no: EM1333641

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