If nominal GDP is reported at $10,000 billion and the GDP implicit price defoliator is 150, the GDP in constant dollars is
a. $6,667 billion.
b. $8,250 billion.
c. $5,650 billion.
d. $5,350 billion.
a. $6,667 billion.
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Classical economists argue that the velocity of money is unchanging, regardless of changes in M, P, or Q
Indicate whether the statement is true or false
In a price leadership oligopoly model,
A. a cartel of leading firms determines price and industry output. B. the industry in consortium with the government determines price and output. C. one firm is the price leader and all other firms follow. D. the firms abandon a profit-maximizing goal.
Two firms, Alpha and Beta, produce identical computer hard drives. They have identical costs, and the hard drives they produce are identical. The industry is a natural duopoly
Alpha and Beta enter into a collusive agreement, according to which they split the market equally. If both firms comply with the agreement A) together they will operate in a way indistinguishable from a monopoly. B) the price of a hard drive will be equal to marginal cost. C) each firm will make zero economic profit. D) the oligopoly will produce more hard drives than a profit-maximizing monopoly would produce.
Subprime mortgages are
A) mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgages. B) mortgages issued to borrowers with flawed credit histories. C) mortgages which are bundled together by financial institutions and sold to investors. D) government-backed mortgages issued by Fannie Mae and Freddie Mac.