1. Key facts about economic fluctuationsThe following graph approximates business cycles in the United States from the first quarter of 1953 to the third quarter of 1957. The vertical blue barcoincides with periods of 6 or more months of declining real gross domestic product (real GDPP).27002002000W 2400230019501954196519561957YEARSource: "Current dollar and Real GDP" Bureau of Economics Analysis, last modihed May 1, 13, accessed May 15, 13, http://www.bea.gov/national/xds/gdplev.ds.Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shadedperiod in 1953, is known asTrue or False: Small ups and downs in real GDP follow a consistent, predictable pattern.O frueO FalseWhich of the following probably occurred as the U.S. economy experienced declining real GDP in 19537 Check all that applyORetail sales declined.O Home sales increased.O Industrial production increased.O Consumer spending declined.

Real GDP is a macroeconomic statistic that measures the value of the goods and services produced by…

Notice that real GOP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blu period in 1953, is known as True or False: Small ups and downs in real GDP follow a consistent, predictable pattern. O true O False Which of the following probably occurred as the U.S. economy experienced dectining real GDP in 19537 Check all that apply. O Retail sales declined. O Home sales increased. O Industrial production increased.

Notice that real GOP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blu period in 1953, is known as True or False: Small ups and downs in real GDP follow a consistent, predictable pattern. O true O False Which of the following probably occurred as the U.S. economy experienced dectining real GDP in 19537 Check all that apply. O Retail sales declined. O Home sales increased. O Industrial production increased.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported à GDP deflator of 85 in 2010 and 100 in 2009. Between 2009 and 2010, Ⓒa. real output rose and the price level fell. Ob, real output and the price level both fell. Oc.real output fell and the price level rose. Od. real output and the price level both rose.
If taxes fall and government spending rises by the same amount, there is very little change in GDP. O True O False
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13. Assume that we compute current dollar GDP for 2021Q2 and find that it rose 2% from 2020Q2. But we also find that general prices rose over the same period by the same amount, 2%. Is the country better off, worse off, or about the same when it comes to output? Explain.
GDP excludes O the production of nondurable goods. O the market value of unpaid work in the home. O the production of services. O positive changes in inventories.
Companies often produce more goods in a year than they end up selling. How do the unsold goods impact GDP in the year they are produced? O The unsold goods are considered inventory and their value will increase investment spending in the year they are produced. O None of these statements is correct. O The unsold goods are not counted until they are sold in a later year. O The unsold goods are considered durable goods, and their value will increase consumption spending in the year they are produced. « Previous Next » ASUS 14 18 E3 [X & 4 8 9. Y 6
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dules 6 to 80 Suppose a small economy produces only smart TVs. In year one, 20,000 TVs are produced and sold at a price of $700 each. In year two, 14,800 TVs are produced and sold at a price of $725 each. As a result Multiple Choice О Mc Graw Hill real GDP stayed the same. real GDP increased. nominal GDP stayed the same. O real GDP decreased. 1 Q A P Z 73 zoom 02 W S a MacBook Pro % ^ 25 $4 #m 3 E 6 & N 7 R T Y U + W CC 8 9 - wall O יו O P 1 D F G H J K L X C tion 2 H command > B N M V- > H command op
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Production Prices Year1 Year 2 Year 3 Year 1 Year 2 Year 3 Good X 60 80 100 $1.00 $1.00 $1.40 Good Y 100 110 130 $0.80 $0.90 $1.00 Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 2 is Select one: О а. 100 O b. 179 O c. 106.5 O d. 93.9