If real GDP in 2018 (using 2009 prices) is lower than nominal GDP of 2017, then
A) prices in 2018 are lower than prices in 2017.
B) nominal GDP in 2018 equals nominal GDP in 2017.
C) prices in 2018 are higher than prices in 2017.
D) real GDP in 2018 is larger than real GDP in 2017.
Answer: A
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As depicted in the circular flow diagram, firms
A) supply the resources that households demand in factor markets. B) demand the goods and services that households supply in product markets. C) demand the resources that households supply in product markets. D) supply the goods and services that households demand in product markets.
If real income rises 5%, prices rise 3%, and nominal money demand rises 7%, what is the income elasticity of real money demand?
A) 3/4 B) 4/5 C) 5/6 D) 6/7
The natural rate of unemployment (i) is the economy's desirable level of unemployment. (ii) arises from a single problem that has a single solution. (iii) is the amount of unemployment that does not go away on its own
a. (i) and (ii) only b. (iii) only c. (i), (ii), and (iii) d. None of the above is correct.
Because increases in inflation reduce aggregate spending and short-run equilibrium output:
A. the aggregate demand curve is horizontal. B. the aggregate demand curve is downward sloping. C. the aggregate demand curve is upward sloping. D. the short-run aggregate supply line is downward sloping.