If nominal GDP is $15 trillion and real GDP is $12 trillion, the GDP deflator is:
A. 120.
B. 125.
C. 75.
D. 150.
Answer: B
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What will be an ideal response?
Permitting the exchange rate to float
A) automatically reduces the real income effects of volatility in aggregate expenditures. B) will result in dramatic shifts in the balance of payments. C) will induce locomotive effects between most trading partners. D) will result in the complete crowding-out effect of fiscal spending.
The concept of economic efficiency refers to the size of the "economic pie" whereas the concept of equality refers to how the "pie" is distributed
a. True b. False Indicate whether the statement is true or false
If one Mexican peso was worth 0.05 U.S. dollar, then one U.S. dollar would be worth:
a. 20 U.S. dollars. b. 20 Mexican pesos. c. 2 Mexican pesos. d. 0.05 Mexican pesos. e. 1 Mexican peso.