Answer the question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year
Refer to the above data. For the years shown, the growth of
A.
Real GDP exceeds the growth of nominal GDP
B.
Nominal GDP exactly reflects increases in real output
C.
Nominal GDP overstates increases in real output
D.
Nominal GDP understates increases in real output
C.
Nominal GDP overstates increases in real output
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The concept of opportunity cost in a fully employed economy with technology and resources held constant tells us that
A. expansion of output in one industry means expansion cannot occur in another industry. B. expansion of output in one industry means output in another industry must contract. C. output cannot be increased in any industry. D. output of all industries must contract until more resources are found.
Which of the following events did not contribute to the high rate of bank failures in the 1980s and 1990s?
a. The collapse of the communist world, principally Russia; because of the collapse,they could not pay off their loans to U.S. banks b. Falling farm prices in the U.S. c. Bad loans to Mexico d. An unexpected slide in oil prices e. Falling agricultural land values
Refer to the accompanying figure. Suppose the solid line represents the current supply of Star Wars action figures. If the price of the plastic used to make action figures rises, current supply will:
A. not change because a change in the price of plastic will not affect the demand for action figures. B. shift to S(A). C. not change; only the quantity supplied will change. D. shift to S(B).
The supply of loanable funds comes from all the following, but:
A. borrowers. B. individuals. C. businesses. D. government.