If the base year is 2005, the nominal GDP for 2015 is $10,000 billion, and the GDP deflater for 2015 is 90, what is the real GDP for 2015 compared to 2005?
a. $9,000 billion
b. $10,090 billion
c. $11,111 billion
d. $12,001 billion
c. $11,111 billion
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It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China. Critically evaluate this claim
The price level in the economy is a composite measure reflecting the:
a. rate of change in average prices for the wide range of services produced and consumed in one of the sectors of the economy relative to the price level expected the next year. b. average price of the wide range of goods and services produced and consumed in the economy relative to the price level in a base year. c. rate of change in the price of inputs used to produce the wide range of goods and services in the overall economy relative to the price level in a base year. d. government's cost of procuring resources to produce public goods and services relative to the price level in a base year.
If a country is a net importer of a good, the price of that good will ________ when the economy goes from closed to open for trade.
A. increase B. stay the same C. decrease D. first increase then decrease
Arguments in support of protectionism (and against free trade) include all of the following EXCEPT
A. new and troubled industries need to be protected until they acquire sufficient strength to compete equally against their foreign counterparts. B. national security interests require that nations retain the ability to produce vital materials at home and avoid dependence upon potential enemies. C. jobs at home should be protected from cheap foreign labor. D. protectionism increases total domestic consumption possibilities.