The value of GDP calculated by the expenditure method:
a. includes inflation, while the value of GDP calculated by the income method excludes inflation.
b. excludes inflation, while the value of GDP calculated by the income method includes inflation.
c. is always equal to the value of GDP calculated by the income method
d. is always greater than the value of GDP calculated by the income method.
c
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If prices in the current year are higher on average than in the base year, real GDP in the current year ________ nominal GDP in the current year.
A. is equal to B. could be greater than or less than C. is greater than D. is less than
Dodd-Frank addressed many of the issues that led to the financial crisis. Which of the following was NOT addressed by Dodd-Frank regulations?
A) stricter consumer protection laws B) privately owned, government-sponsored enterprises (GSEs) such as Fannie mae and Freddie Mac C) resolution authority over the large financial institutions D) higher requirements on firms dealing in derivatives
The price of gasoline has risen and the quantity sold has fallen. This was likely caused by
a. a rise in the price of crude oil. b. a seasonal rise in the demand for gasoline. c. use of a new public transit system. d. the discovery of crude oil in New Jersey.
You receive a five percent raise in your hourly wage. The inflation rate is four percent. Your purchasing power has
A. decreased. B. is indeterminate. C. increased. D. stayed the same.