If you wanted to measure whether the output of an economy was increasing or decreasing across time periods, you would use the real GDP data rather than the nominal GDP data because
a. exports are excluded from real GDP but not nominal.
b. real GDP incorporates the impact of federal budget deficits and surpluses; nominal GDP does not.
c. real GDP reflects the impact of transfer payments on the economy, but nominal GDP does not.
d. real GDP adjusts for changes in the general level of prices, but nominal GDP does not.
D
You might also like to view...
To achieve the efficient amount of use of a common resource, the use should be such that ________ equals ________
A) marginal social cost; marginal private cost B) marginal social cost; marginal social benefit C) marginal social benefit; marginal private cost D) marginal private cost; marginal private benefit
During most of the time in recent decades, the government sector
A) has not spent more than it collected in taxes. B) has run large deficits. C) has run large surpluses. D) has balanced its budget every year.
The primary problem with entitlements, from a budgetary perspective, is that _____
a. expenditures are much harder to control than for non-entitlements b. they add to the uncertainty of the budgetary process because it is difficult to predict how many individuals will be eligible c. it is impossible to control spending on entitlements once created d. a and b e. all of the above
The short-run effect from a decrease in the lump-sum tax rate shifts the AE curve ________ and the AD curve _______.
A) downward; rightward B) downward; leftward C) upward; rightward D) upward; leftward