A decrease in real GDP would affect the U.S. economy by:
A. cutting tax revenues and raising government expenditures.
B. cutting government expenditures and raising tax revenues.
C. raising both tax revenues and government expenditures.
D. cutting both government expenditures and tax revenues.
Answer: A
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Suppose an economist stated that Brazil had achieved its potential GDP 2013. This would imply that at this level of real GDP, Brazil experienced
A) peak in its business cycle in 2013. B) unemployment equal to zero. C) inflation equal to zero. D) full employment. E) a negative Okun Ga
In the above table, the average product of three workers is
A) 1. B) 2. C) 3. D) 4.
Teenage unemployment rates tend to be a little lower than the overall unemployment rate.
Answer the following statement true (T) or false (F)
Why is it important to distinguish nominal GDP from real GDP?