If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is
A) 12.5. B) 80. C) 125. D) 800.
C
You might also like to view...
Which of the following statements provides the best description of one reason why regulation of an industry might not increase economic efficiency?
a. There are more employees of regulated industries than affected customers. b. Insufficient regulator pay makes it difficult to hire effective regulators. c. The regulated industry has stronger incentives to be involved in the regulation process than the general publi c. d. Regulated industries have too much economic power and can litigate away most regulation.
Which of the following is not a lagging indicator?
a. Duration of unemployment. b. Stock prices. c. Outstanding commercial and industrial loans. d. Prime rate.
If the inflation rate is 2 percent and nominal wages increase by 1 percent, what happens to real wages?
a. They rise by 1 percent. b. They fall by 1 percent. c. They remain constant. d. They fall by 2 percent. e. They rise by 3 percent.
How does the calculation of GDP include the costs of natural resource depletion that occurs when output is produced?
A. The value of resource depletion is added to GDP. B. The cost of resource depletion is not measured in GDP. C. The cost of resource depletion is added to real but not nominal GDP. D. Resource depletion causes GDP to overstate well-being.