Suppose an economy's entire output is cars. In Year 1, all manufacturers produce cars at $15,000 each; the real GDP is $300,000. In Year 2, 20 cars are produced at $16,000 each. What is the real GDP in Year 2?
(A) $280,000
(B) $20,000
(C) $320,000
(D) $300,000
Ans: (D) $300,000
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A. A service that provides temporary secretaries to companies B. An automobile factory C. A farm D. An electric utility
Everything else held constant, increased demand for a country's ________ causes its currency to appreciate in the long run, while increased demand for ________ causes its currency to depreciate
A) imports; imports B) imports; exports C) exports; imports D) exports; exports
Dividing (P x Q) by V2 times gives:
a. A stock value b. A flow value. c. Neither a stock nor a flow value. d. Real GDP
The Monetary Control Act of 1980 extended the Fed's authority to:
a. control the discount rate. b. impose required-reserve ratios on all depository institutions. c. All of the answers are correct. d. control the federal funds rate.