Exhibit 5-6Use the table below to answer the following question(s).
Nominal GDP
GDP
Year(billions)
deflator
Year 1 600
100.0
Year 21,000
133.3
Refer to Exhibit 5-6. Between Year 1 and Year 2, the general level of prices increased by approximately:
A. 16.7 percent.
B. 33.3 percent.
C. 66.7 percent.
D. 133.3 percent.
Answer: B
Economics
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The new classical model has as its central idea that
A) wage and price stickiness explain fluctuations in real GDP. B) workers and firms have rational expectations. C) the Federal Reserve should adopt a monetary growth rule. D) shifts in aggregate demand have no impact on real GDP.
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Efficient financial institutions foster the flow of:
A. Saving and investment B. Spending and income C. Resources and products D. Inventions and ideas
Economics