In official government statistics, the GDP deflator is actually calculated using:
A. a method called a chain-weighted index.
B. the ratio of nominal GDP to real GDP from the year before it.
C. a simpler approach, so the results are easily comparable.
D. the value of a market basket that households typically purchase.
A. a method called a chain-weighted index.
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Refer to Table 2-14. What is Scotland's opportunity cost of producing one guitar?
A) 0.25 motorcycles B) 4 motorcycles C) 12 motorcycles D) 16 motorcycles
A disadvantage of chain-weighting is that
A) past inflation rates change whenever the base year changes. B) past growth rates of real GDP change whenever the base year changes. C) it causes output growth to slow. D) the components of real GDP don't sum to real GDP.
The marginal rate of technical substitution is equal to the
A) slope of the total product curve. B) change in output minus the change in labor. C) change in output divided by the change in labor. D) ratio of the marginal products of the inputs.
If a country's population grows at the same rate as its real GDP, then real per capita GDP
a. grows at an increasing rate b. grows at a constant rate c. doesn't change d. decreases at a decreasing rate e. decreases at a constant rate