Aggregation is the process of
A) calculating real GDP based on nominal GDP and the price index.
B) summing individual economic variables to obtain economywide totals.
C) forecasting the components of GDP.
D) predicting when recessions will occur.
B
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In economics, what is meant by investment?
What will be an ideal response?
An individual with a constant marginal utility of income will be
A) risk averse. B) risk neutral. C) risk loving. D) insufficient information for a decision
Which of the following would be considered a contingent? contract?
A) a piece rate contract B) a profit-sharing contract C) a contact with a bonus D) All of the above.
An added benefit of inflation is that it allows for the possibility of
a. menu costs. b. aggregate supply shocks. c. negative real interest rates. d. recessions.