If real GDP in a year was $20 trillion and the price index was 120, then nominal GDP in that year was approximately:
a. $30 trillion
b. $24 trillion
c. $12 trillion
d. $10 trillion
b. $24 trillion
You might also like to view...
If the market for a good or service is competitive,
a. there are many independent buyers and sellers b. buyers and sellers have no control over price c. there are no entry barriers d. all of the above
A 10 percent increase in income brings about a 15 percent decrease in the demand for a good. What is the income elasticity of demand and is the good a normal good or an inferior good?
What will be an ideal response?
When bidders values of an item in an auction are correlated, buyers of an item will ________ their bids and sellers will ________ their bids to avoid the winner's curse.
A) raise; raise B) raise; lower C) lower; lower D) lower; raise
Fed purchases of bonds from the public, called open market operations:
A. tend to increase reserves in the system leading to reductions in interest rates. B. tend to reduce the money supply because the bonds are expensive to purchase. C. tend to reduce reserves in the banking system because all the Fed gets is more bonds. D. tend to increase bond prices but generally have no effect on bank reserves.