The base year refers to the year whose:
A. levels of output are used to calculate the nominal GDP for all years.
B. prices are used to calculate nominal GDP for all years.
C. levels of output are used to calculate the real GDP for all years.
D. prices are used to calculate real GDP for all years.
Answer: D
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In an economy, 40 million people are employed, 2 million are unemployed, and 8 million are not in the labor force. What is the labor force participation rate?
A) 83 percent B) 84 percent C) 80 percent D) 87.5 percent
Adverse selection can occur when
A) all persons involved in a transaction have full information. B) one person has information not available to others. C) post-agreement incentives result in workers shirking. D) nobody has any information about a particular product.
The exchange of secondhand securities
a. takes place in an oligopolistic market b. does not provide funds to the firm that issued those securities c. includes the initial sale when securities are issued by a firm d. involves very few institutional investors e. lowers the liquidity of the securities
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?