A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009 . It also reported a GDP deflator of 125 in 2010 and 105 in 2009 . Between 2009 and 2010,
a. real output and the price level both rose.
b. real output rose and the price level fell.
c. real output fell and the price level rose.
d. real output and the price level both fell.
c
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Why is it not a contradiction to say that a firm is simultaneously earning an accounting profit but suffering an economic loss?
What will be an ideal response?
An economic system characterized by private ownership of the factors of production and economic activity coordinated through a system of markets and prices is called:
a. capitalism. b. socialism. c. communism. d. none of these.
If a major union goes on strike, then the country would be operating inside its production possibilities frontier
a. True b. False Indicate whether the statement is true or false
If demand is perfectly inelastic, the demand curve is vertical, and the price elasticity of demand equals 0
a. True b. False Indicate whether the statement is true or false