Suppose the price level increases and real GDP remains the same. Then
A) nominal GDP must decrease.
B) nominal GDP must remain unchanged.
C) nominal GDP must increase.
D) none of the above are true.
C
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Refer to Figure 6-1. A perfectly inelastic demand curve is shown in
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
The larger the marginal propensity to save, other things constant, _____
a. the larger the marginal propensity to consume b. the larger the multiplier c. the flatter the consumption function d. the flatter the saving function e. the steeper the consumption function
Currently an economy is producing (at a point on its production possibilities frontier) 100 units of good X and the opportunity cost of producing 1X is 3Y. If good X is produced at increasing opportunity costs, then when the economy produces 120 units of good X (on the same PPF) the opportunity cost of producing 1Y (not 1X) could be
A) 1/4X. B) 1/3X. C) 1/2X. D) 1X. E) none of the above
Medicaid:
A. helps finance medical expenses for those participating in the TANF and Supplemental Security Income programs. B. has been abandoned in favor of privately provided medical insurance. C. is a program of medical insurance for the aged and retired. D. is a compulsory national health insurance program that only covers preventative medical services.