How is nominal GDP converted into real GDP?
(A) By eliminating the effects of price increases on GDP growth.
(B) By adding up all of the real purchases made in the economy.
(C) By adding the contributions of American-owned factories in foreign countries.
(D) By adding all incomes earned to total expenditures by consumers, businesses, and government.
Ans: (A) By eliminating the effects of price increases on GDP growth.
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In some markets, demand can be approximated by Q = 50 ? 5P + 10Y where Q is quantity, P price per unit, and Y = buyers' income. Supply can be approximated by Q = ?5 + 10P
a. If Y = 20, what is equilibrium price and output? b. If Y rises to 25, what is the new equilibrium price and output?
Mexico is
a. a poor country, and over the past century its rate of economic growth has been higher than that of the United States. b. a poor country, and over the past century its rate of economic growth has been lower than that of the United States. c. a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States. d. a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.