If the velocity of money is about 1.8 and the money stock is about $8 trillion, what is the real GDP?
A. $14.2 trillion
B. $4.4 trillion
C. $0.8 trillion
D. We cannot compute real GDP from the data; we can only compute nominal GDP.
Answer: D
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The basket of goods measured in computing the CPI includes goods produced in prior years and imported goods
Indicate whether the statement is true or false
The major reason for the twists, turns, and spurts in the economy's growth path, according to real business cycle theorists, is
a. interest rate fluctuations b. wars c. housing shortages d. a climatic change e. year to year changes in the pace of technological change
Which of the following is expected to increase aggregate demand in the short run?
a. Deficit budget b. Surplus budget c. Zero based budget d. Balanced budget
A period during which aggregate output rises is known as a(n)
A. recession. B. hyperinflation. C. inflation. D. expansion.