What is the difference between real GDP and nominal GDP?
(A) Real GDP includes nonmarket activities; nominal GDP has no nonmarket activities.
(B) Real GDP allows for depreciation; nominal GDP allows for no depreciation.
(C) Real GDP is based on constant prices; nominal GDP is based on the current year's prices.
(D) Real GDP is accurate to hundreds of dollars; nominal GDP is accurate to thousands of dollars.
Ans: (C) Real GDP is based on constant prices; nominal GDP is based on the current year's prices.
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Tom, a government employee, has a defined benefit pension.He has worked for his employer for 35 years before retiring at age 65.His final salary was $85,000
Calculate how much of his final preretirement income a standard defined benefit pension plan would replace.
Refer to Figure 24-2. Ceteris paribus, an increase in workers and firms adjusting to having previously overestimated the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Which of the following statements about potential GDP is false?
A) The Fed's goal is to have equilibrium GDP close to potential GDP. B) When GDP is at potential, cyclical unemployment is zero. C) It occurs when firms are producing at their maximum level of output. D) It occurs when firms are producing with a workforce of normal size working normal hours.
Which of the following could be considered a goal of policy to address poverty and inequality?
A. Economic development B. Safety nets C. Redistribution D. All of these are goals of policy to address poverty and inequality.