An economy recently reported nominal GDP of 3 trillion euro and a GDP deflator of 200 . What was real GDP?
a. 1.5 trillion euro, and real GDP is a better gauge of economic activity than nominal GDP.
b. 1.5 trillion euro, but nominal GDP is a better gauge of economic activity than real GDP.
c. 6 trillion euro, and real GDP is a better gauge of economic activity than nominal GDP.
d. 6 trillion euro, but nominal GDP is a better gauge of economic activity than real GDP.
a
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Which of the following is not a component of the aggregate expenditures of a country?
a. Investment b. Government spending c. Net exports d. Consumption e. Transfer payments
When the government imposes a price ceiling on a good whose price is too high,
a. an excess supply is created b. supply will increase to meet the demand c. the price ceiling becomes the rationing mechanism d. quantity demanded of the good will fall e. a shortage will arise
Economists perceive a college applicant's grade point average and standardized test scores (such as SAT and ACT scores) to be rationing devices
Indicate whether the statement is true or false
One method of assessing the degree to which current fiscal policies affect future generations is through a device called
A) inter-temporal fiscal accounting. B) generational accounting. C) long-term debt assessment technique. D) fiscal stabilization tool.