If real GDP in 2016 using 2015 prices is equal to the nominal GDP of 2016, then
A. real GDP in 2016 is larger than real GDP in 2015.
B. prices in 2016 are lower than prices in the base year.
C. the price level has not changed.
D. prices in 2016 are higher than prices in the base year.
Answer: C
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Answer the following statements true (T) or false (F)
1. The ability to produce a good or service at a lower opportunity cost than other producers face is known as comparative advantage. 2. The ability of a nation to gain from specialization and exchange is affected by factors such as shipping costs and exchange rates. 3. One cause for the uneven standard of living throughout the world is the uneven distribution of resources. 4. The application of the principle of comparative advantage requires each of two trading partners to have an absolute advantage over the other in the production of some particular commodity.
In an economy without government or trade, it must be true that:
A. savings equals investment. B. consumption equals savings plus investment. C. consumption plus savings equal investment. D. consumption plus investment equal national savings.
A foreigner buying U.S. goods must buy dollars to purchase them
a. True b. False Indicate whether the statement is true or false
Consider an unregulated monopoly in Figure 13.2. If that monopoly sets its price equal to its marginal cost, it would:
A. earn negative profits. B. earn maximum profits. C. earn zero profits. D. earn small, but greater than zero, profits.