suppose a small economy produces only smart TVs. in year one, 10,000 TVs are produced and sold at a price of $1,000 each. in year two, 10,000 TVs are produced and sold at a price of $1,500 each. As a result, ____ real GDP increased. ____ real GDP decreased. ____ real GDP stayed the same. ____ nominal GDP stayed the same.

suppose a small economy produces only smart TVs. in year one, 10,000 TVs are produced and sold at a price of $1,000 each. in year two, 10,000 TVs are produced and sold at a price of $1,500 each. As a result, real GDP increased. real GDP decreased. real GDP stayed the same. nominal GDP stayed the same.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 14QP

See similar textbooks

Similar questions

Question 9 Which of the following affects this year's GDP? There may be more than one answer. a) The government decides to hand out more money to the poor. b) The government decides to raise health workers' salaries. c) The parliament decides to freeze their own salaries. d) You volunteer as a vaccine provider.
Suppose a small economy produces only smart TVs. In year one, 100,000 TVs are produced and sold at a price of $1,200 each. In year two, 75,000 TVs are produced and sold at a price of $1,200 each. As a result, Multiple Choice nominal GDP fell to $90 million. real GDP increased. nominal GDP increased. real GDP stayed the same.
You work for the Committee for Economic Evaluation in the small nation of Kinsdale. Your current job is to determine the country's gross domestic product in the past year. Being a very small country, the people only produce three things, which are listed in the table below. Good Bananas Hiking boots Roses Quantity produced in the past year 42,000 10,000 10,000 Price $1.50 $15 $4.00 Based on the data in the table, what is the GDP for Kinsdale? $
A U.S. consumer buys a new Toyota vehicle (a Japanese company), which is manufactured at Toyota manufacturing facility using all U.S. made parts in San Antonio, TX. As a result, OU.S. consumption, U.S. GDP, and Japanese GDP are all unaffected. U.S. consumption and GDP increase, but Japanese GDP is unaffected U.S. consumption and Japanese GDP increase, but U.S. GDP is unaffected. OU.S. consumption, U.S. GDP, and Japanese GDP all increase.
Suppose that a farmer grows wheat, which she sells to a miller for $10. The miller turns the wheat into flour, which she sells to a baker for $55. The baker turns the wheat into bread, which she sells to consumers for $140. Consumers eat the bread. What is GDP in this economy? Consider the following table showing the breakdown of GDP (in billions) for China. GDP Category Amount (in billions) Consumption 1700 Investment 700 Government Expenditure 100 Exports 50 Imports 40 Using the expenditure approach, calculate GDP for China.
During 2009, the leather company produced enough leather for 20 couches. The couch manufacturing company bought 80% of that leather for $16,000 and promised to buy the remaining 20% for $4,000 in 2010. The couch manufacturing company produced 16 couches during 2009 and sold each one during that year for $3,000. What was the contribution to GDP for 2009? Select one: a. $52,000 a. $52,000 b. $64,000 b. $64,000 c. $48,000 c. $48,000 d. $68,000
How would each of the following transactions affect the GDP of the United States (Increase, decrease, or does not change)? The U.S. government pays $1 billion in salaries for government workers. GDP will... The U.S. government pays $1 billion to Social Security recipients. GDP will... The U.S. government pays a U.S. firm $1 billion for newly produced airplane parts. GDP will... The U.S. government pays $1 billion in interest to holders of U.S. government bonds. GDP will...
Real GDP per capita is NOT an adequate measure of the well-being of each person in an economy. average real GDP per person in the economy. a country's average aggregate output per person. a country's average aggregate spending per person.
Select all events that contribute to increase the current year’s GDP in Canada? A household purchases lumbers produced during the current year to renovate his house. The government purchases meals in a restaurant for its ministers. A household purchases a newly built house. The government builds a new road. An individual gets a haircut. None of the above.
Select all events that contribute to increase the current year’s GDP in Canada? An apple producer sells apples to an household. The government purchases newly produced books for the public schools. A firm produces a kitchen table but cannot sell it during the current year. A household purchases a newly built house. A household purchases an old house using the service of a real estate agent. None of the above.
Suppose a small economy produces only smart TVs. In year one, 84,000 TVs are produced and sold at a price of $1.000 each. In year two, 80,500 TVs are produced and sold at a price of $1,100 each. As a result, Multiple Choice nominal GDP stayed the same, real GDP stayed the same. real GDP decreased real GDP increased.
A country has just one resource - labor - that it can use to produce two goods, books and clothing. At first the country has 10 million workers, and each worker can produce either 2 books or 5 units of clothing per day. Suppose the country wants to produce 8 million books. Suppose the price of a book is $10, and the price of a unit of clothing is $20. Using this information and your answer from the last question, calculate the country's GDP (measured in dollars per day). Enter your answer as a number in the space below. (For example, if your answer is $3.75 million, enter it as 3750000 in the space below.)