If the money supply in an economy is $300, the price level is $4, and real GDP is $1,500, what is the nominal value of output?
What will be an ideal response?
$6,000
You might also like to view...
Which of the following is an example of a fiscal stimulus?
A) decrease in transfer payments B) decrease in taxes C) decrease in government expenditure on goods and services D) increase in taxes E) none of the above
After a firm makes both short and long run adjustments in its production plan following a reduction in the wage,
A. the marginal product of labor will be higher. B. the marginal product of labor will be lower. C. the marginal product of capital will be unchanged. D. the marginal product of capital may be higher or lower depending on the degree of substitutability between capital and labor. E. (a) and (c) F. (a) and (d) G. (b) and (c) H. (b) and (d)
"The Big Tradeoff" refers to the effect of redistribution on efficiency
Indicate whether the statement is true or false
The main difference between GDP and GNP is that GNP excludes: a. net income of foreigners
b. consumption of fixed capital. c. transfer payments. d. government purchases.