If the nominal GDP was $350 Billion but the real GDP is $2.2 Trillion. Select all that apply O The price index must be greater than 100 O The value of the dollar was lower that year O Prices were higher that year O Prices were lower that year O The price index must be less than 100 O The price index must be equal to 100 O The value of the dollar was higher that vear
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- The value of production in an economy is $24.08 trillion. If production increases by 1.65% then what is the new value of production? Round to two decimal places and do not enter a dollar sign. Leave the answer in trillions as in the new value of production is $_______ trillion.All of these are the positive effects of high net exports, except ______. a. Lower price levels b. Higher gross domestic product c. Higher exchange rates d. Higher aggregate demandSuppose you'll have an annual nominal income of $20,000 for each of the next three years, and the inflation rate is 5 percent per year. Hint: Present value = Future value = (1 + Growth in prices)* = Real value of next year's income = Next year's income ÷ (1+ Growth in prices) Instructions: Round your responses to the nearest whole dollar. a. Find the real value of your $20,000 salary for each of the next three years. Year 1: $ Year 2: $ Year 3: $ b. If you have a COLA in your contract, what is the real value of your salary for each year? Year 1: $ 19047 Year 2: $ 18144 Year 3: $ 17276
- Question 21 As the price level rises, a. The currency depreciates, so net exports fall. b. The currency depreciates, so net exports rise. c. The currency appreciates, so net exports fall. O d. The currency appreciates, so net exports rise.The United States currently is O A. a net borrower and has been since the end of World War II in 1945. B. a net lender and has been since the 1980s. C. a net lender and has been since the end of World War II in 1945. D. a net borrower and has been since the 1980s. O E. neither a net lender nor a net borrower.The table gives data about Northland's economy in 2017. What is the value of GDP in Northland in 2017? The value of GDP in Northland in 2017 is _______. A. $2,262 billion B. $1,291 billion C. $971 billion D. $1,439 billion Item Amount (billions) Consumption expenditure 720 Wages 652 Indirect taxes less subsidies 148 Investment 235 Net exports of goods and services 54 Profit 171 Government expenditure on goods and services 282
- An open market sale by the Bank of Canada will cause the value of the dollar to Select one: a. rise, while increasing net exports. b. rise, while reducing net exports. c. fall, while reducing net exports. d. fall, while increasing net exports.B. Suppose fast food workers currently earn $8 per hour and the aggregate price level is $2. A number of the workers, believing that their real wage is too low, organized a strike for fast-food workers. 1. If next year’s aggregate price level is $4, what must their wage be next year so that the workers have a real wage that is equal to this year’s real wage? (realvalue = nominalvalue/price)7. When demand for dollars in foreign countries increases, the value of the dollar: A) decreases first and then increases. B) appreciates. C) depreciates. D) doesn't change. 8. The marginal product of labor is: A) additional output produced when one additional unit of labor is added. B) value of additional output when one dollar's worth of additional labor is added. C) output divided by labor input. D) additional output produced when one additional unit of labor and one additional unit of capital are added. 9. In a small open economy, if exports equal $5 billion and imports equal S7 billion, then there is a trade and net capital outflow. A) surplus; positive B) deficit; negative C) surplus; negative D) deficit; positive
- Consider an economy that produces wood, boats, and has a marketing agency. This year domestic wood production generates revenues of $80. Of this $80 worth of wood, $40 were purchased by the boat producer and $40 were sold abroad to a foreign company. The wood producer paid $40 worth of wages and $10 worth of taxes. The boat producer combines the services of the marketing agency, the wood it purchased from the wood producer, and $20 worth of labor (wages) to produce $120 worth of boats. Its revenues, which include a boat produced in the previous year and that was carried as inventory, are $130. Domestic families buy all these boats. This company pays $10 worth of taxes. The marketing agency, whose sole client is the boat company, generates a revenue of $40 which is enough to cover its labor costs of $40. This company pays no taxes. The government in this economy uses the $20 worth of taxes and builds a port. The cost of the port is $40 that are paid to workers. This port is partially…Consider an economy that produces wood, boats, and has a marketing agency.This year domestic wood production generates revenues of $80. Of this $80 worth of wood, $40were purchased by the boat producer and $40 were sold abroad to a foreign company. The woodproducer paid $40 worth of wages and $10 worth of taxes.The boat producer combines the services of the marketing agency, the wood it purchased from thewood producer, and $20 worth of labor (wages) to produce $120 worth of boats. Its revenues,which include a boat produced in the previous year and that was carried as inventory, are $130.Domestic families buy all these boats. This company pays $10 worth of taxes.The marketing agency, whose sole client is the boat company, generates a revenue of $40 whichis enough to cover its labor costs of $40. This company pays no taxes.The government in this economy uses the $20 worth of taxes and builds a port. The cost of theport is $40 that are paid to workers. This port is partially financed by…Suppose that federal spending in a country was $340 million in Year 1, $400 million in Year 2, and $410 million in Year 3. Also, assume that the consumer price index (CPI) was 30 in Year 1, 31.2 in Year 2, and 34.4 in Year 3. a. Complete the table below by converting the given nominal dollar values to Year 3 dollars (these dollar amounts represent real federal spending). Period Year 1 Year 2 Year 3 Nominal dollar amount (millions) 340 400 410 CPI Inflation rate 7.0825% (between Year 1 and Year 3) N/A Real spending (millions, in Year 3 dollars) $410