Economists measure the price level
A. by keeping track of nominal GDP.
B. using a price index.
C. by measuring the growth rate in money supply.
D. by measuring the growth rate in real GDP.
Ans: B. using a price index.
Economics
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If the nominal gross domestic product (GDP) for a year is $5.4 trillion, and the real gross domestic product (GDP) for the same year is $3.6 trillion, the GDP price index is _____
a. 0.667 b. 150 c. 66.67 d. 50 e. 33.33
Economics
Suppose workers expect the inflation rate to be 3.6 percent and they receive a nominal wage increase of 7.5 percent. If the actual inflation rate turns out to be 2.8 percent, workers will receive a lower real wage than expected
a. True b. False Indicate whether the statement is true or false
Economics