What is the relationship between real GDP, nominal GDP, and the price index?
What will be an ideal response?
The GDP price index is useful for calculating real GDP from nominal GDP. The price index number for a reference period is arbitrarily set at 100. For years when the price index is below 100, dividing nominal GDP by the price index (in hundredths) inflates nominal GDP to obtain real GDP. For years when the price index is greater than 100, dividing nominal GDP by the price index (in hundredths) deflates nominal GDP to obtain real GDP.
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A strong majority of economists support the proposition that the material, not psychological, conditions of the slaves compared favorably with those conditions faced by industrial workers before the Civil War
Indicate whether the statement is true or false
Education and training are examples of investment in human capital.
Answer the following statement true (T) or false (F)