To calculate real GDP, we
A. Adjust the market value of goods and services for changing prices.
B. Measure in the prices of goods and services of that period.
C. Estimate future prices of goods and services.
D. None of the choices are correct.
Answer: A
You might also like to view...
An economic model includes
A) only normative statements. B) no use of marginal concepts. C) all known details in order to increase its accuracy. D) only details considered essential.
What is meant by allocative efficiency? How does a perfectly competitive firm achieve allocative efficiency?
What will be an ideal response?
A price above the equilibrium price will:
A) result in quantity supplied being less than quantity demanded. B) result in a shortage. C) create pressure for price to fall. D) tend to rise over time.
Everything else remaining unchanged, the effect of domestic spending shocks on a country with a floating exchange rate differs depending on
A. the mobility of capital across countries. B. the interest rate differential between the country and its trading partners. C. the change in the domestic price level in the short run. D. the current trade balance situation of the country.