A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009 . It also reported a GDP deflator of 85 in 2010 and 100 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.
b
You might also like to view...
The actual unemployment rate exceeds the natural rate of unemployment. What are policymakers concerned about in this situation?
What will be an ideal response?
If there is an unemployment problem, what might policy makers increase to stimulate demand in an economy?
a. payroll taxes b. government spending c. interest rates d. austerity measures
(Figure: Demand for Online Movie Rentals) Use Figure: Demand for Online Movie Rentals. A decrease in the price of Google Chromecast adapters (a complement good) would result in a change illustrated by the move from:
a.) l to m in panel D
b.) f to g in panel A
c.) h to i in panel B
d.) j to k in panel C
Which of the following is typically a result of government licensing requirements?
A. Wages in the licensed occupation fall. B. People in the industry begin to work longer hours and receive lower benefits. C. The number of people working in the industry increases. D. Competition in the licensed occupation is reduced.