Consider an economy over the years 2008 and 2009. The output in the economy has remained constant over the two years but the prices of all goods and services have halved. In such a situation,
A) the real GDP of the economy stays the same over the two years.
B) the nominal GDP of the economy remains the same over the two years.
C) the real GDP of the economy increases over the two years.
D) the nominal GDP of the economy increases over the two years.
A
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Refer to the Article Summary. The increase in GDP discussed in the article summary was due in part to increases in commercial and residential construction
Increases in commercial and residential construction will cause a(n) ________ the aggregate expenditure curve. A) movement down along B) downward shift of C) upward shift of D) movement up along
The larger the diameter of a natural gas pipeline, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of one reason for:
A. Economies of scale B. Diminishing returns to scale C. Diminishing marginal returns D. Increasing marginal cost