In periods when prices are falling, on average
A) real GDP will grow slower than nominal GDP.
B) real GDP will grow faster than nominal GDP.
C) real GDP will grow as fast as nominal GDP.
D) one cannot calculate real GDP.
Answer: B
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Refer to the given data. The monetary multiplier for the commercial banking system is:
Answer the question on the basis of the following consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is 20 percent. All figures are in billions and each question should be answered independently of changes specified in all preceding ones.
A. 5.
B. 10.
C. 15.
D. 20.
The payoff matrix shows all of the following EXCEPT
A. if one chooses a low price and the other doesn't, the low priced firm will make $8 million. B. if one oligopolist chooses a high price and the other doesn't, the high-priced firm makes $8 million. C. if they both choose a low price, each makes $4 million. D. if both oligopolists choose a high price, each makes $6 million.