Suppose in 2007, nominal GDP in Clarendon was $12,840 billion and real GDP was $10,560 billion. Calculate the value of the implicit price deflator. Follow the convention of multiplying price indexes by 100.

What is one of the primary characteristics of perfectly competitive markets?

(A) They have relatively high barriers to entry. (B) They have relatively high start-up costs. (C) They are relatively efficient. (D) They are relatively inefficient.

If inflation in the United States is lower than inflation in other countries, what will be the effect on net exports for the United States?

A) Net exports will rise as U.S. exports increase. B) Net exports will decrease as U.S. imports decrease. C) Net exports will decrease as U.S. exports decrease. D) Net exports will rise as U.S. imports increase.