Nominal GDP is not used to determine recessions because inflation can disguise the occurrence of recessions.
Answer the following statement true (T) or false (F)
True
Inflation can make it seem like production is rising when it is not.
You might also like to view...
Kara and Kyle are competing sockeye salmon fishers. Both have been allocated ITQs that limit their catch to 2,000 tons of sockeye salmon each. Kara's cost per ton is $8; Kyle's cost per ton is $12. Refer to the information given. If the market
price of sockeye salmon is $15 per ton, and Kara and Kyle both catch their quota, their combined profit will be: A. $6,000. B. $14,000. C. $20,000. D. $30,000.
For an inferior good, if the income effect more than offsets the substitution effect, we call that good
A) a Giffen good. B) a normal good. C) an inferior good. D) a neutral good.
Keynesian theory is based on the hypothesis that
A) full employment is automatically attained in any economy. B) saving is influenced primarily by the interest rate. C) saving and consumption are influenced primarily by real current disposable income. D) planned savings equal planned investment only at full employment.
The production function in the table below exhibits negative marginal returns to capital over what output range? Production Function for Good XL*KQMPK=(?Q/?K)APK=(Q/K)LaborCapitalOutputMarginal Product of CapitalAverage Product of Capital900----910575.75.7092032426.716.2093065733.3B9401,07241.526.809501,52445.230.489601,97645.232.939702,39141.534.169802,72433.334.059902,991A33.2391003,0485.730.4891103,016-3.227.4291202,945-7.124.54
A. Between 3,016 and 2,945 B. Between 0 and 1,524 C. Between 2,391 and 3,048 D. Between 0 and 2,991