Suppose that in 2012, real GDP is larger than nominal GDP. The GDP price index in 2012 is definitely
A) less than 100.
B) larger than the GDP price index in 2012.
C) greater than 100.
D) negative.
E) less than the GDP price index in 2012.
A
You might also like to view...
Which of the following will help reduce the natural rate of unemployment?
a. an increase in the minimum wage b. a decrease in cyclical unemployment c. an increase in the number of automatic stabilizers d. an increase in government spending on employment training programs e. a decrease in taxes
The data suggest that wages increase more with age for the highly educated compared to the less educated. This is evidence that
A. highly educated people also invest more in postschooling human capital compared to the less educated. B. the return to education is low for all education levels. C. the return to education is constant with respect to age. D. less educated workers invest on-the-job training more so than do the highly educated. E. on-the-job training is unrelated to the level of formal schooling.
Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).Recall the Application. During "happy hour," many bars and restaurants face an increase in demand for food and drink, and these establishments often cut prices during these times of increased demand. When this demand increases, the demand curve facing these bars and restaurants becomes:
A. vertical. B. horizontal. C. steeper. D. flatter.
B. excluded when calculating GDP because they do not reflect current production
A. added to exports when calculating GDP because imports reflect spending by Americans. B. subtracted from exports when calculating GDP because imports do not constitute spending by Americans. C. subtracted from exports when calculating GDP because imports do not constitute production in the United States. D. added when calculating GDP because imports do not constitute production in the United States.