If nominal GDP of a country increased and real GDP remained unchanged in a particular year, which of the following is most likely to have taken place?
a. Output increased and the price level increased
b. Output increased and the price level decreased
c. Output remained constant and the price level increased
d. Output decreased and the price level decreased
e. Output increased and the price level remained constant
c
You might also like to view...
In the early 1960s, the discovery of the Phillips curve relationship caused economists and policy makers to think that they understood the trade-offs between: a. aggregate supply and aggregate demand. b. interest rate and investment. c. inflation and unemployment
d. monetary and fiscal policy. e. rule-making and discretionary policy.
"Scarcity implies that some way of rationing goods must be found." Explain what this statement means. How is this rationing done?
What will be an ideal response?