Essay
Answer all of the following questions concerning GDP growth.
(a)Nominal GDP increases from $5 trillion to $5.5 trillion while the price level increases by 10%.Has real income increased?
(b)Nominal GDP increases from $6 trillion to $6.8 trillion while real GDP increases from $6 trillion to $6.2 trillion.What happened to the price level?
(c)Nominal GDP increases from $7 trillion to $8 trillion while real GDP increases from $7 trillion to $7.5 trillion.By what percent did real income change?
Correct Answer:
Verified
(a)No,real income has not increased.To s...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q67: A change in business inventories is:<br>A)not counted
Q68: What is net foreign factor income,and how
Q69: What are the four expenditure components of
Q70: GDP is a:<br>A)stock concept and refers to
Q71: Which of the following is not a
Q73: In comparing the per capita GDPs of
Q74: When real wealth increases:<br>A)the economy can produce
Q75: A genuine progress indicator (GPI)attempts to:<br>A)adjust GDP
Q76: If the market prices of publicly traded
Q77: Net foreign factor income is the:<br>A)income earned