Use of real GDP to measure changes in national output from one period to another can be misleading if
What will be an ideal response?
the share of production carried out in the nonmarket sector is different for the two periods
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
If real GDP increased by 2% and nominal GDP increased by 2%, then output: a. increased and the price level increased
b. increased and the price level decreased. c. increased and the price level remained unchanged. d. remained unchanged and the price level increased.
The stimulus policy drew immediate criticism,
What will be an ideal response?