If nominal GDP is $2,000 billion and the GDP price index is 120, then real GDP is ________ billion
A) $2,000
B) $1,667
C) $16.67
D) $240
E) $6
B
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Consider the perfectly competitive firm in the above figure. At what price will long-run equilibrium occur?
A) $11 B) $12 C) $22 D) $23
In any country, the population will generally be better off as long as the ____ over time and population ____
a. quantity and quality of output decreases; does not increase faster than real output b. quantity and quality of output increases; increases faster than real output c. quantity and quality of output increases; does not increase faster than real output d. technology improves; increases faster than real output
The IS curve has a
A. negative slope because a higher interest rate leads to a decrease in government spending which reduces the domestic output level. B. positive slope because a higher interest rate leads to an increase in aggregate savings and thus an increase in domestic real investment. C. negative slope because a higher interest rate leads to a decrease in aggregate demand that results in lowering of the domestic production level. D. positive slope because a higher interest rate leads to an increase in foreign investment and thus raises the level of aggregate income.
Okun's law shows that when the unemployment rate is below the natural rate,
A) inflation is higher than expected. B) inflation is lower than expected. C) output is below potential. D) output is above potential.