Which of the following best describes real GDP?
A) Real GDP = Potential GDP - Nominal GDP
B) Real GDP = Potential GDP + Deviation from potential GDP
C) Real GDP = Deviation from potential GDP / Potential GDP
D) Real GDP = Nominal GDP / Potential GDP
B
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The opportunity cost of an activity is
a. zero if you choose the activity voluntarily b. the amount of money spent on the activity c. the value of the best alternative not chosen d. the sum of benefits from all of the sacrificed alternatives e. the difference between the benefits and the costs of that activity
In a flexible exchange rate system:
(a) The government intervenes to influence the exchange rate. (b) The exchange rate should adjust to equate the supply and demand of the currency. (c) The Balance of Payments should always be in surplus. (d) The Balance of payments will always equal the government budget.
Consider Figure 12.5. Confessing is a dominant strategy for:
A. player A but not player B. B. player B but not player A. C. both players. D. neither player.
The heavy reliance on private health insurance in the U.S. began during World War II, as a:
A. Legal requirement for employment B. Patriotic duty of firms C. Way of imitating European employment practices D. Response by employers to the wage controls in effect then