Nominal GDP differs from real GDP because:
A. Nominal GDP is based on constant prices
B. Real GDP is based on current prices
C. Real GDP results from adjusting for changes in the price level
D. Nominal GDP results from adjusting for changes in the price level
C. Real GDP results from adjusting for changes in the price level
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Z is a normal good. The equilibrium price and equilibrium quantity of Z in the year 2011 was $25 and 60 units, respectively. In 2014, the equilibrium price of Z had decreased to $15 and the equilibrium quantity had also decreased to 50 units
Other things remaining the same, which of the following could explain this change? A) Shift of the demand curve for Z to the left B) Shift of the demand curve for Z to the right C) Shift of the supply curve of Z to the right D) Shift of the supply curve of Z to the left
Given a vertical aggregate supply curve, which of the following is most likely to occur if the Fed pursues restrictive monetary policy?
A. The equilibrium output will decrease but the price level will stay the same. B. The equilibrium price level and output will both decrease. C. The equilibrium price level and output will both increase. D. The equilibrium price level will decrease but output will stay the same.