A GDP price index of 130 in year 2 means that ________.
A. prices in year 2 are on average 130% higher than in the base year
B. prices in year 2 are on average 13 times that in the base year
C. nominal GDP is 130% higher than real GDP in year 2
D. prices in year 2 are on average 30% higher than in the base year
Answer: D
You might also like to view...
If spending increased by $100, and the GDP increased $400 as a result, the MPC must be:
A. 0.70 B. 4 C. 0.75 D. 2
Which of the following economic activities is ignored in GDP accounts?
What will be an ideal response?
In the short run, total costs equal
A) the sum of total fixed costs and total variable costs. B) the sum of total fixed costs and total explicit costs. C) the sum of total variable costs and total implicit costs. D) the sum of total fixed costs and total implicit costs.
When measuring the benefits from investing in human capital
A) the only benefits come from the increase in salary because of going to school. B) in addition to the monetary benefits, the benefit from expanding horizons should be included. C) we must include the costs of tuition and books but not the money made from part-time jobs. D) we must include the foregone earnings in the benefit calculation.