Is it possible for a country's nominal GDP to increase and real GDP to decrease from one year to the next?
A. Yes, it would indicate a larger rise in prices relative to a decrease in output.
B. No, since prices are held constant and that would be mathematically impossible.
C. Yes, it would indicate a larger rise in output relative to a decrease in prices.
D. No, since output is held constant and that would be mathematically impossible.
A. Yes, it would indicate a larger rise in prices relative to a decrease in output.
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To examine how the total production of an economy has changed over time, it would be better to examine
A) real GDP. B) the GDP deflator. C) GDP at current prices. D) nominal GDP.
Which of the following is likely to have the most price elastic demand?
a. milk b. sailboats c. good X in the short run compared to good X in the long run d. gasoline
The skills, training, and education possessed by workers contribute to economic growth
A. by increasing saving. B. by increasing the quality of labor. C. by increasing the quantity of labor. D. by increasing real wages.
The median voter model assumes that voters have single-peaked preferences
a. True b. False