Suppose that in 2011 nominal GDP increased and real GDP decreased relative to the year 2010 . It can be concluded that:
a. the economy experienced inflation and the total production of goods and services increased.
b. the economy experienced deflation and the total production of goods and services increased.
c. the economy experienced inflation and the total production of goods and services decreased.
d. the economy experienced deflation and the total production of goods and services decreased.
c
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Which of the following would not cause a movement along the AD curve?
a. An increase in the price level. b. A decrease in the price level. c. A change in the interest rate caused by a change in the price level. d. A change in autonomous consumption e. Both a change in the interest rate caused by a change in the price level, and a change in autonomous consumption.
Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsFulton Family Farm$0.500DeLux Popcorn Co.$2.50$.50Friendly Groceries$4.00$2.50If the corn was grown and the jar of popcorn produced in the year 2015, but the jar was sold at Friendly Groceries in the year 2016, what is the contribution of these transactions to GDP in the year 2015?
A. $3.00 B. $0.50 C. $2.50 D. $2.00