If real GDP is greater than nominal GDP then the GDP price index
A) is greater than 100.
B) is less than 100.
C) is equal to 100.
D) is either equal to or greater than 100.
E) None of the above answers is correct because we need to choose a new base year.
B
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GDP may inaccurately measure the value of aggregate output because it may not properly account for
A) production in the underground economy and the true value of government production. B) the true value of government production and the proper value of purchases and sales of used goods. C) the proper value of purchases and sales of used goods and depreciation of consumer durables. D) the depreciation of consumer durables and production in the underground economy.
If the demand for a monopoly's output shifts rightward, the change in quantity produced is
A) positive. B) negative. C) zero. D) not predictable.