What is the relationship between real GDP, nominal GDP, and the price index?
What will be an ideal response?
The GDP price index is useful for calculating real GDP from nominal GDP. The price index number for a reference period is arbitrarily set at 100. For years when the price index is below 100, dividing nominal GDP by the price index (in hundredths) inflates nominal GDP to obtain real GDP. For years when the price index is greater than 100, dividing nominal GDP by the price index (in hundredths) deflates nominal GDP to obtain real GDP.
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An organization that seeks to draw the strength that comes from bringing together people of different perspectives, experiences, cultures, and backgrounds embraces:
A) voluntarism. B) hygiene factors. C) operant conditioning. D) diversity.
The price of good X is $5 and the price of good Y is $15. If the marginal utility of good X is 20 then the marginal utility of good Y must be ________ to have an optimum combination of goods purchased
A) 4 B) 20 C) 60 D) 80
Private property rights involve
A) exclusive rights to use, transfer, and exchange the property. B) exclusive rights to use property, but not to exchange the property. C) rights to enjoy the property in any way desired but not to transfer or exchange the property. D) rights granted by the government for renewable terms of 100 years or more.
The change in output caused by a one-unit change in labor is referred to as the
A) compounded physical product of labor. B) average product of labor. C) marginal product of labor. D) total product of labor.