How have the values of nominal GDP, real GDP and GDP price index changed in the United States since the year 2005?
What will be an ideal response?
According to Table 25.7, the nominal GDP in the U.S. economy for the year 2005 was $12,638.4 billion, while the nominal GDP in the year 2012 was $15,684.8 billion. The growth rate in nominal GDP from the year 2005 to the year 2012 was about 24.1%. The real GDP values for the U.S. economy changed from $12,638.4 billion in the year 2005 to $13,593.2 billion in the year 2012. The growth rate of the real GDP for the U.S. economy during this four-year period was about 7.6%. Notice that the nominal GDP in the year 2005 would be equal to its real GDP, indicating that the year 2005 was used by the Bureau of Economic Analysis as the base year. The GDP price index was 100 in the year 2005 and 115.4 in the year 2012. The percentage change in the GDP price index for the U.S. economy between the years 2005 and 2012 was 15.4%.
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Which of the following is a drawback to having a common currency across countries, as in the European Union?
A) Having a common currency implies that the prices of goods across countries must always be the same, regardless of consumer preferences for goods across countries. B) A common currency increases barriers to trade across countries, reducing opportunities for economic growth. C) With a common currency, individual countries are no longer able to run independent monetary policies. D) None of the above is a drawback to a common currency.
What strategic advantage compared to a Cournot Oligopoly results in the Stackelberg outcome?
A) the ability to move first B) the ability to set price C) the ability to set quantity D) the ability to make independent decisions by the Stackelberg leader
Suppose Sun Bakery sells cupcakes and buns, using various equipment and labor to make and deliver its products. Which of the following costs is a fixed cost for Sun Bakery?
a. The money paid to buy cupcake liners and flour b. The money paid to provide health benefits to the staff c. The money paid to workers as wages d. The money paid to pay back the loan taken to purchase commercial-grade ovens
For a firm in a perfectly competitive industry
A. the demand curve is unitary elastic throughout. B. the price elasticity of demand is zero. C. marginal revenue and product price are equal at every level of output. D. more output can be sold only if the firm unilaterally lowers its product price.