Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the question on the basis of these data. year units of output price per unit 1 3 3 2 4 4 3 6 5 4 7 7 5 8 8 Refer to the above data. For the years shown, the growth of:
a) real GDP has exceeded the growth of nominal GDP.
b) nominal GDP accurately reflects changes in real output.
c) nominal GDP overstates increases in real output.
d) nominal GDP understates increases in real output.
c) nominal GDP overstates increases in real output.
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The long-run aggregate supply curve shows the
A) maximum GDP the nation will ever produce. B) full-employment level of real GDP. C) level of real GDP associated with a constant price level. D) level of output at which real GDP equals nominal GDP.
Giving presents at Christmas does NOT generate a deadweight loss if
A) all gifts are money. B) everybody gets exactly want she wants. C) nobody can be made better off by returning the gift and purchasing a different one. D) All of the above.
When a transfer price increases
a. the buying division will want to sell less to the selling division b. the buying division will want to sell more to the selling division c. the selling division will want to sell less to the buying division d. the selling division will want to sell more to the buying division
The earnings test reduces the amount of Social Security payments a retiree can collect unless she or he is under 60.
Answer the following statement true (T) or false (F)