Refer to Table 8-7. Suppose that a simple economy produces only four goods and services: iPods, t-shirts, bottled water, and oranges. Calculate nominal GDP for this simple economy
What will be an ideal response?
Nominal GDP equals (20 × $
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The two largest sources of tax revenue for the U.S. federal government are
A. personal income taxes and payroll taxes. B. personal income taxes and corporate income taxes. C. payroll taxes and excise taxes. D. excise taxes and customs duties.
During the 1960s and early 1970s, economists believed that the Phillips curve indicated
a. that higher inflation was the price for more unemployment. b. that higher levels of employment could be achieved with lower inflation. c. a menu of choices for policy makers. d. All of the above are correct.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
Graphically the intersection of the aggregate demand curve and the short-run aggregate supply line determines:
A. long-run equilibrium. B. exogenous spending. C. potential output. D. short-run equilibrium.