Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 23, Problem 6MCQ
To determine
To identify:
The option that correctly states the percentage rise in real
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If nominal GDP increases by 5 percent a year and the GDP price index rises by 2 percent a year, then real GDP increases by _______.
A.
2.5 percent a year
B.
3 percent a year
C.
7 percent a year
D.
10 percent a year
20. During a presidential campaign, the incumbent argues that he should be
reelected because nominal GDP grew by 12 percent during his 4-year term in
office. You know that population grew by 4 percent over the period and that
the GDP deflator increased by 6 percent during the past 4 years. You should
conclude that real GDP per person
a. grew by more than 12 percent.
b. grew, but by less than 12 percent.
c. was unchanged.
d. decreased.
Below are some data from the land of milk and honey:Year Price of MilkQuantity of Milk (Quarts)Price of HoneyQuantity of Honey (Quarts)2007 $1 100 $2 502008 $1 200 $2 1002009 $2 200 $4 100Using 2009 as the base year:d. Compute the growth in nominal GDP. e. Compute the growth in real GDP.f. Did economic well-being rise more in 2008 or 2009? Explain
Chapter 23 Solutions
Foundations of Economics (8th Edition)
Ch. 23 - Prob. 1SPPACh. 23 - Prob. 2SPPACh. 23 - Prob. 3SPPACh. 23 - Prob. 4SPPACh. 23 - Prob. 5SPPACh. 23 - Prob. 6SPPACh. 23 - Prob. 7SPPACh. 23 - Prob. 8SPPACh. 23 - Prob. 9SPPACh. 23 - Prob. 10SPPA
Ch. 23 - Prob. 1IAPACh. 23 - Prob. 2IAPACh. 23 - Prob. 3IAPACh. 23 - Prob. 4IAPACh. 23 - Prob. 5IAPACh. 23 - Prob. 6IAPACh. 23 - Prob. 7IAPACh. 23 - Prob. 8IAPACh. 23 - Prob. 9IAPACh. 23 - Prob. 10IAPACh. 23 - Prob. 1MCQCh. 23 - Prob. 2MCQCh. 23 - Prob. 3MCQCh. 23 - Prob. 4MCQCh. 23 - Prob. 5MCQCh. 23 - Prob. 6MCQCh. 23 - Prob. 7MCQCh. 23 - Prob. 8MCQ
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- Why do you suppose that U.S. GDP is so much higher today than 50 or 100 years ago?arrow_forward0:42:29 The real GDP of country ABC is $1,000. The population of ABC is 250. The real GDP of country XYZ is $125. The population of XYZ is 5. Ceteris paribus, it follows that the in ABC is than it is in XYZ. O a. standard of living; is lower O b. inflation rate; is less Oc. standard of living; is higher O d. inflation rate; is greater Next pagearrow_forwardGenerally, as the proportion of middle-income households in a country __________, the __________ a nation's purchasing power tends to be. A. increases; greater B. increases; less C. decreases; greater D. decreases; less E. There is no relationship at allarrow_forward
- Contact us Search Guides Software Colleges - This .A country's standard of living depends on its ability to produce goods and services إختر واحداً: 0.50 السؤال thi O ?Which of the following values the production of goods and services at market prices A. Real GDP 0.50 B. Nominal GDP تا السؤال C. Real interest rate D. Nominal interest rate A O В о C O DO TOSHIBA 144arrow_forwardanswer question Darrow_forwardThe following table contains information about an economy that produces only soda and pizza. The base year is 2020. Use this information to answer the question. Year Price of Soda Quantity of Soda 2020 100 $10 2021 120 12 2022 120 14 What is the approximate percentage increase in prices from 2021 to 2022? a. 0 percent b. 13 percent c. 16 percent d. 22 percent e. 38 percent $3 3 4 Price of Pizza Quantity of Pizza 50 70 70arrow_forward
- Identify each of the following as nominal or real variables.a. the physical output of goods and servicesb. the overall price levelc. the dollar price of applesd. the price of apples relative to the price of orangese. the unemployment ratef. the amount that shows up on your paycheck after taxesg. the amount of goods you can purchase with the wage you get each hourh. the taxes that you pay the governmentarrow_forward25. The economy is growing at a healthy rate. Nominal GDP is expected to grow by 4 percent this year. However, inflation is growing and now stands at 3 percent. A bank is offering interest rates of 6 percent, and unemployment is down to 5 percent. What is the real GDP growth rate? A. 2 percent B. 1 percent C. 9 percent D. 3 percentarrow_forwardThe curve in the figure at right will shift to the right when A. the proportion of the population that is elderly increases. B. population falls. C. the price level falls. D. labor productivity increases. Real GDP per YearPrice Levelarrow_forward
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