Using hypothetical numbers, calculate the real GDP for Country A and then calculate the real GDP per capita for this country.
What will be an ideal response?
Hypothetical numbers will vary, but should be proportionally realistic. For example,
Country A uses a base year of 2010. So an index number of 100 is assigned to this
year. The nominal GDP for 2018 is $10,000 billion. The GDP deflator for this year is
108. $10,000 billion divided by 108 equals 92.59 billion. To get the real GDP for this
year in 2010 dollars, 92.59 is multiplied by 100, which equals $9,259 billion. Country A
has a population of 200 million. As a result, to get the real GDP per capita, $9,259
billion is divided by 200 million, which equals $46,296.
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A) only if the price level is constant or rising. B) when aggregate demand decreases. C) only when both aggregate demand and aggregate supply increase. D) when aggregate supply increases.
The U.S. economy is the largest in the world. What two factors primarily explain this? What makes the U.S. economy unique?
Suppose one county in Missouri decides it wants to reduce alcohol consumption, so the county passes a law that raises the price of a bottle of beer by $1 . As a result, people drive to other counties to drink alcohol, which results in an increase in drunk driving. This illustrates the principle that people respond to incentives
a. True b. False Indicate whether the statement is true or false
Imagine that the stock market crashes, interest rates plummet, and inflation soars. Considering this, what would most likely be the attitude of banks about giving out loans?
a. somewhat open b. very open c. somewhat hesitant d. very hesitant