Answer the question below based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.YearUnits of OutputPrice per Unit18$22103315441855206For the years shown, the growth of ________.
A. nominal GDP exactly reflects increases in real output
B. nominal GDP understates increases in real output
C. nominal GDP overstates increases in real output
D. real GDP exceeds the growth of nominal GDP
Answer: C
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Refer to above figure. With free trade and no tariffs, what is the quantity of Widgets imported?
What will be an ideal response?
The sensitivity of one economic variable to changes in another variable is known as
a. the variability coefficient b. elasticity c. the sensitivity coefficient d. the cross-variability coefficient e. the law of demand
In spite of the fact that unemployment rates were at a 30-year low in 1996-2000 . the United States economy also experienced
a. declining inflation. b. balance of payments surpluses. c. large budget deficits. d. low growth.
Marcia is a white 23-year-old female, and Joan is a black 23-year-old female. Both Marcia and Joan were economics majors, and they graduated from the same college in the same year with the same GPA. Marcia and Joan both got identical jobs at a brokerage firm after graduating from college. They both work equally hard. Marcia earns $38,000 a year, and Joan earns $30,000 a year. Select the best
explanation for this wage difference. a. Marcia has less human capital than Joan. b. Marcia receives a compensating wage differential that Joan does not. c. Joan has been discriminated against because she is black. d. Marcia has been discriminated against because she is white.