If in some year real GDP was $5 trillion and the GDP deflator was 200, what was nominal GDP?
a. $2.5 trillion.
b. $10 trillion.
c. $40 trillion.
d. $100 trillion.
b
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Recent studies on the effectiveness of fiscal policy tend to suggest that increases in government spending are more effective than tax cuts in stimulating real GDP
a. True b. False Indicate whether the statement is true or false
Critics of the huge net returns on, for example, oil production will claim that the returns are
a. interest on the capital investment. b. rents on a natural resource. c. profits on entrepreneurial activity. d. exorbitant and should be taxed away.
The economy is in a recessionary gap and there is evidence that the economy is in a liquidity trap. In this situation, a Keynesian is likely to advocate the use of __________ policy
A) expansionary fiscal B) contractionary fiscal C) expansionary monetary D) contractionary monetary
Organized exchanges where securities and financial instruments are bought and sold are called
A) financial intermediaries. B) financial markets. C) banks. D) financial branches.