1) GDP understates the value of output produced by an economy because itA. inclu

1) GDP understates the value of output produced by an economy because itA. includes transactions that do not take place in organized markets such as home cooked mealsB. includes environmental degradation caused by increased output productionC. excludes value added from the underground economy such as tips taken under the tableD. excludes the value of the wages and benefits of government employee2) Other things equal a decrease in the real interest rate willA. shift the investment demand curve to the rightB. shift the investment demand curve to the leftC. move the economy upward along its existing investment demand curveD. move the economy downward along its existing investment demand curve3) Other things equal a decrease in corporate income taxes willA. decrease the market price of real capital goodsB. have no effect on the location of the investment demand curveC. shift the investment demand curve to the rightD. shift the investment demand curve to the left4) Inflation in U.S. prices will causeA. an increase in the demand for U.S. dollars and an appreciation in the exchange rateB. an increase in the supply of U.S. dollars and a depreciation in the exchange rateC. a decrease in the demand for U.S. dollars and a depreciation in the exchange rateD. a decrease in the supply of U.S. dollars and an appreciation in the exchange rate