Which of the following statements describes the difference between real and nominal GDP?
A. Real GDP includes only goods; nominal GDP includes goods and services.
B. Real GDP is measured using constant base-year prices; nominal GDP is measured using current prices.
C. Real GDP is equal to nominal GDP less the depreciation of the capital stock.
D. Real GDP is equal to nominal GDP multiplied by the CPI.
Ans: B. Real GDP is measured using constant base-year prices; nominal GDP is measured using current prices.
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From the information in the above table, what is the marginal utility of the third quart of ice cream?
A) 80 B) 70 C) 60 D) 230
If the Japanese central bank performed a sterilized intervention to reduce the value of the yen, the most likely result is:
A) a lower value of the yen due to an increase in the monetary base in Japan. B) a lower value of the yen due to a decrease in Japanese interest rates. C) a higher value of the yen since the intervention was sterilized. D) no change in the value of the yen since neither the monetary base nor Japanese interest rates would be affected.