If nominal GDP in one year is $5000 billion and the price index is 135, the real GDP that year is $3704 billion.
Answer the following statement true (T) or false (F)
True
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Which of the following is not a common property?
A) a city park B) a main street C) a public beach D) a movie screening
If a good has a price elasticity of demand equal to 0.4, and the price elasticity of supply is equal to 6.5, the good is a strong candidate for a unit tax
Indicate whether the statement is true or false
Which of the following is true?
a. Monetary policy influences long-term real interest rates more than short-term interest rates. b. Short-term interest rates are primarily determined by real factors and the expected inflation. c. A shift to a more expansionary monetary policy will tend to reduce short-term interest rates. d. A shift to a more expansionary monetary policy will tend to reduce the expected rate of inflation in the future.
Eric brews beer for a hobby. He has noticed that whenever he brews an unusually bad batch of beer, his next batch is much better. One explanation for this is that Eric learns from his past mistakes. Another explanation is:
A. regression to the mean. B. loss aversion. C. status quo bias. D. the representative heuristic.