Use the following information to answer the next several questions:Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures. In 2015, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2016, the economy produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $7 and $15, respectively. Based on the information in Scenario 1, nominal GDP in 2016 in this economy was:
A. $830.
B. $1,025.
C. $1,090.
D. $1,345.
Answer: D
You might also like to view...
In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the aggregate demand function to shift down, the equilibrium level of aggregate output to ________, and the IS curve to shift to the ________,
everything else held constant. A) rise; left B) rise; right C) fall; left D) fall; right
If you pay a parking fee that lets you park at your job for free every day, its average cost per day is irrelevant to your decision whether to part at your job on a given day of the year
a. True b. False Indicate whether the statement is true or false
The answer is: 1/(1 - MPC). What is the question?
A) What is the marginal propensity to save? B) What is the efficiency wage model? C) What does consumption equal if the economy is in equilibrium? D) What is the multiplier? E) What does disposable income equal if the economy is in equilibrium?
An assumption of a competitive market is that both buyers and sellers are price takers. When we go to the mall to shop for clothing or to the grocery to buy food, what do we usually observe?
A. Both buyers and sellers are usually price takers. B. Buyers are often price makers, but sellers are usually price takers. C. Buyers are often price takers, but sellers are usually price makers. D. Both buyers and sellers are usually price makers.