Suppose John Smith pays $100 to Thomas Jefferson. What does this do to GDP?
A. We can say with certainty that the nominal GDP has increased, but we can't say whether real GDP has increased or decreased.
B. We can say with certainty that the GDP has increased by $100.
C. We need more information to determine whether GDP has changed.
D. We can say with certainty that the GDP has increased, but we cannot determine the amount.
Answer: C
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If the price level rises, what will happen to the demand for reserves?
A. It will shift outward. B. It will shift inward. C. It will remain unchanged. D. It depends on what happens to interest rates.
The adult non-institutionalized population in the town of Bedrock is 75 thousand. Within Bedrock, 5 thousand are unemployed, and 40 thousand are employed. Calculate the number of people not in the labor force
Due to loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S. government reduce the export (or limit the supply of domestic producers) by imposing an export quota of 20 billion units per year. What happens to U.S. price of semiconductors, the quantity of semiconductors bought by U.S. people, and the quantity of semiconductors exported? [hint: use equation to calculate the equilibrium]
Due to loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S. government reduce the export (or limit the supply of domestic producers) by imposing an export quota of 20 billion units per year. What happens to U.S. price of semiconductors, the quantity of semiconductors bought by U.S. people, and the quantity of semiconductors exported? (hint: use equation to calculate the equilibrium) (3 marks)
Consumption spending is $22 million, planned investment spending is $7 million, actual investment spending is $7 million, government purchases are $9 million, and net export spending is $3 million. the following is not true?
What will be an ideal response?