Imagine that an economy produces two goods, flashlights and fishing lures. In 2015, the economy produced 100 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $5 and $11, respectively
In 2016, the economy produced 120 flashlights and 60 fishing lures, and the prices of flashlights and fishing lures were $7 and $14, respectively. respectively. What happened to nominal GDP from 2015 to 2016? What happened to real GDP?
Nominal GDP in 2015 was (100 × 5 ) + (50 × 11 ) = $1,050. In 2016 nominal GDP was (120 × 7 ) + (60 × 14 ) = $1,680. For real GDP, we calculate GDP for 2016 in 2015 dollars. 2016 GDP in 2015 dollars would be (120 × 5 ) + (60 × 11 ) = $1,260. So while nominal GDP increased by 60 percent, real GDP only increased by 20 percent.
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During which of the following time periods did inflation remain above 5 percent every year?
A) 1990 through 1999 B) 1973 through 1982 C) 1968 through 1971 D) 1958 through 1962
Reserves are ________.
What will be an ideal response?
Purchasing power parity may not hold in practice due to all of the following except
A) transportation costs. B) cross-country differences in environmental regulations. C) trade barriers like tariffs and quotas. D) the existence of non-traded goods.
The minimum wage has its greatest impact on the market for
a. female labor. b. older labor. c. black labor. d. teenage labor.