Suppose Smith pays $100 to Jones
A. We can say with certainty that the GDP has increased by $100.
B. We can say with certainty that the GDP has increased, but we cannot determine the
amount.
C. We can say with certainty that the nominal GDP has increased, but we can't say whether
real GDP has increased or decreased.
D. We need more information to determine whether GDP has changed.
D. We need more information to determine whether GDP has changed.
You might also like to view...
The Great Depression, in which real GDP fell and unemployment rose, can be characterized as a ________
A) inflationary gap B) long-run equilibrium C) recessionary gap D) full-employment equilibrium
A "Just Say No" drug education policy that successfully educates consumers to reduce their demand for drugs will lower drug prices and reduce the quantity of drugs demanded
a. True b. False Indicate whether the statement is true or false
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
According to the text, when management selects a price or quantity, it also selects the other. Explain why this is true.
What will be an ideal response?