An economy's production possibilities are most likely to expand if:
Gross investment is greater than depreciation
An increase in the dollar value of output produced
Between 1960 and 1970 real GDP declined but nomial GDP continued to rise. The increase in nominal GDP was due to:
Which of the following types of government spending is included in the calculation of GDP?
Federal, state and local government spending on goods and services only
During the 1980-1990 time periods, real GDP was constant but nominal GDP was increased. This can be explained by
If nominal GDP was $11,500 billion in 2003 and the price level in 2003 was 111.6, then real GDP would have been approximately:
Suppose iPhones cost consumers $200 and USB cables cost consumers $25. What contribution does the production of 2000 iPhones and 1200 USB cables make to GDP?
Average price levels decreased
During the period between the early 1970s and 1980, real GDP grew at a faster rate than nominal GDP. This is an indication that:
Assume nominal GDP is $10,000 billion in period 1 and $15,000 billion in period 2. If prices in period 2 are twice as high as in period 1, real GDP in peroid 2 is:
10bn(1.0) = 10bn; X(2.0)=15bn -> X = 15bn/2.0 = 7.5bn
Which of the following typically purchases the most goods and services in the U.S. economy?
To avoid counting the same output more than once the calculation of GDP includes:
Only the value of final goods
Suppose Blu-Ray players cost consumers $300 and BLU-Ray discs cost consumers $30. What contribution does the production of 250 Blu-Ray players and 3000 Blu-Ray discs make to the GDP?
A computer manufacturer sells laptops to retail stores for $450 each. If the manufacturer pays $200 for the components in each laptop and $75 in wages, the value added to each computer by manufacturing is: