Refer to the scenario above. What is the nominal GDP of the economy in 2013?
A) $55,000 B) $50,400 C) $47,000 D) $50,000
B
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The figure above shows the market for bank reserves in Futureland. If the Bank of Futureland undertakes an open market sale of government securities that changes the quantity of reserves by $25 billion, then the federal funds rate will
A) remain at 4 percent a year. B) rise to 6 percent a year. C) fall to 4 percent a year. D) change, but more information is needed to determine by how much. E) None of the above answers is correct.
When all relevant information is used to forecast inflation, the resulting forecast is called
A) a rational expectation. B) a natural expectation. C) an expected forecast. D) an expansionary expectation. E) the expected expectation.
A price war:
A. is one possible consequence of oligopolistic rivalry. B. never occurs in oligopolistic markets. C. results in higher profits for sellers. D. occurs only under perfect competition.
Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. In the market for life guards the equilibrium wage
a. increases because the marginal productivity of life guards increases. b. decreases because the marginal productivity of life guards decreases. c. increases because the supply of life guards increases. d. decreases because the supply of life guards decreases.