In an economy experiencing a persistently falling price level:
a) potential GDP will necessarily exceed actual GDP.
b) changes in nominal GDP may either overstate or understate changes in real GDP.
c) changes in nominal GDP understate changes in real GDP.
d) changes in nominal GDP overstate changes in real GDP.
c) changes in nominal GDP understate changes in real GDP.
You might also like to view...
The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. It also illustrates the marginal private benefit. There is no external benefit
The efficient number of concerts in Seattle is A) 0. B) 5. C) 10. D) 20. E) 15.
A the beginning of 2012, you pay $100 for a share of stock that then pays you a dividend of $1 at the beginning of 2013. If the stock price rises from $100 to $109 per share over the year, then you have earned an annual rate of return of
A) 5 percent. B) 1 percent. C) 9 percent. D) 4 percent. E) 10 percent.
Which of the following statements is true?
A) Keynes believed wages are inflexible downward but prices (of goods and services) are flexible. B) Keynes believed an economy could get stuck in a recessionary gap. C) Keynes originated the idea of efficiency wages. D) Keynes believed the economy is self-regulating. E) b and c
Which of the following is not a characteristic of a public good?
A. Nonrivalry in consumption. B. Available to nonbuyers C. Can be consumed only once D. Nonexclusivity