If the GDP deflator is less than 100, which will be higher: nominal GDP or real GDP? Why?
What will be an ideal response?
Real GDP will be higher. The GDP deflator is the ratio of nominal GDP to real GDP, so if the value is less than 100, nominal GDP must be smaller than real GDP.
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Using the above table, what is the average product of labor when Jefferson's Cleaners employs six workers?
A) 11 suits per day B) 12 suits per day C) 13 suits per day D) 14 suits per day
What is the equation of exchange?
What will be an ideal response?
A European option can only be exercised on the final day, the expiration date
Indicate whether the statement is true or false
If households fail to recognize that debt-financing represents a future liability (in the form of higher taxes), they will tend to consume
a. less and pass less net wealth on to future generations. b. more and pass more net wealth on to future generations. c. less and pass more net wealth on to future generations. d. more and pass less net wealth on to future generations.