Briefly explain whether you agree or disagree with the following statements. ( a) 'If nominal GDP is less than real GDP, then the price level must have fallen during the year. (b) 'Whether real GDP declines, nominal GDP must also decline' (c) 'If a recession is so severe that the price level declines, then we know that both real GDP and nominal GDP must decline'

Briefly explain whether you agree or disagree with the following statements. ( a) 'If nominal GDP is less than real GDP, then the price level must have fallen during the year. (b) 'Whether real GDP declines, nominal GDP must also decline' (c) 'If a recession is so severe that the price level declines, then we know that both real GDP and nominal GDP must decline'

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Using the following information. Show all working and calculate (i) the growth in nominal GDP and the growth in Real GDP (ii) did economic well being rise more in 2008 or 2009? Explain
Select the statement below which highlights the role of real GDP: “The growth in real GDP has been much lower than expected over the last few years and... Group of answer choices Unemployment has been rising as a result creating hardship for many in the country. The country is currently in a mild but lasting recession. Inflation is making the growth numbers more optimistic. The government needs to adjust how GDP is being measured
[Related to Solved Problem 2.2a] Use the information in the following table to calculate nominal and real GDP for 2005 and 2012. Assume that 2005 is the base year. 2005 Nominal GDP in 2005 is $. (Round your response to two decimal places.) Real GDP in 2005 is $. (Round your response to two decimal places.) S Product Oranges Plums Haircuts Pizza Quantity 30 200 95 80 Price ilum hina $4.00 $0.50 $30.00 $9.00 Quantity 30 250 120 60 2012 Price $4.50 $0.60 $30.00 $11.25
Jane spends $1,200 on a used computer. How will this calculation effect GDP? A.) Consumption will rise and GDP will rise B.) Investment will rise and GDP will rise C.) Since the good was not currently produced consumption will not rise, neither will GDP D.) The GDP deflator will rise but not real GDP
Refer to the table below for a very simple economy producing three goods: movies, pizzas and cars. Steel panels are needed for car production, cheese is necessary for making pizzas and CGI service is used for movie production. What is the nominal GDP for the economy in 2021? What was the nominal GDP in 2016? What is the real GDP in 2021 using 2016 prices as base year prices? What is the real GDP growth rate between 2016 and 2021?
Question 7
17 01:27:36 Use the following diagrams for the U.S. economy to answer the next question. AS₁ AS₂ 这 AD Real GDP (1) AS₂ AS, * AD (3) Real GDP (2) NY AD₂ AD₁ Real GDP AD₂ Real GDP AD₁ If the economy is initially at full employment, which of the diagrams best portrays a recession resulting from a decrease in government purchases?
Please answer the three questions highlighted in the purple bracket
question 1 just to provide data, please answer the question {"Using the table in question 1, what was real GDP in year 2, in year 1 prices?'}