Suppose nominal GDP in 2009 does not change (compared its previous level in 2008). Given this information, we know with certainty that
A) real GDP increased during 2009.
B) the GDP deflator increased during 2009.
C) both the GDP deflator and real GDP fell during 2009.
D) more information is needed to answer this question.
D
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"The fewer the number of substitutes for a good, the more elastic the demand for that good." Is the previous statement true or false?
What will be an ideal response?
Which statement is true of an exogenous variable in an economic model?
A) It has no direct relation to the endogenous variables. B) Its value within the model cannot be changed. C) It is often a policy variable. D) It is explained inside the model. E) All of the above.
The Herfindahl-Hirshman Index is a method for determining ______.
a. whether or not price fixing is occurring b. compliance with import tariff laws c. an industry’s market concentration d. how much collusion exists in an industry
Which of the following statements is correct?
a. A general, persistent decline in stock prices may signal that the economy is about to enter a boom period because people will be able to buy stock for less money.
b. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits.
c. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices mean that corporations have had low profits in the past.
d. Expectations about the business cycle have no impact on stock prices.