If nominal Gross Domestic Product (GDP) in 2001 was $1 trillion, nominal Gross Domestic Product (GDP) in 2020 was $2 trillion, and the 2001 and 2020 price indexes were 100 and 250 respectively
A. we cannot draw any conclusions about changes in real Gross Domestic Product (GDP).
B. real Gross Domestic Product (GDP) remained constant.
C. real Gross Domestic Product (GDP) increased between 2001 and 2020.
D. real Gross Domestic Product (GDP) decreased between 2001 and 2020.
Answer: D
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A. both parties will share the tax burden equally. B. the buyer will bear all of the tax burden. C. the seller will bear all of the tax burden. D. the distribution of the tax burden cannot be determined from the information given.
A worker would be hurt least by inflation when the:
A. worker anticipates inflation and increases savings at the bank. B. worker is protected by a cost-of-living adjustment clause in an employment contract. C. price level increases but at a decreasing rate. D. worker is protected by fixed annual increases in wages and benefits in an employment contract.
A decrease in long-run average costs resulting from increases in output is
A. attributed to the law of diminishing marginal product. B. attributed to constant returns to scale. C. attributed to economies of scale. D. attributed to diseconomies to scale.