Which of the following statements about monetary and fiscal policy is most correct?
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In the past 5 years, the cost of producing 4K televisions has decreased. At the same time, many consumers are opting to watch television programs on their smartphones, tablets or laptops. Considering these two facts, assess the following claim: "The price of 4K TVs are decreasing, but it is not clear whether the quantity of 4K televisions bought and sold have increased or decreased."...The statement is correct because when there is an increase in supply and a decrease in demand, the new equilibrium price is known, but the new quantity is unknown.A house is built and sold in 2002. The house is resold in 2018. Is the sale price of the house in 2018 included in the GDP for 2018?No, GDP for 2018 includes only production that occurs during 2018.Inflation makes nominal GDP a poor measure of the increase in total production from one year to the​ next. Why?Changes in nominal GDP can occur because there are changes in prices or changes in quantities.Real GDP is able to deal with problem inflation creates when using nominal GDP. How?*All the rest* -Real GDP calculations keep prices constant, so any change in real GDP is from a change in the quantity of production. - Base year prices are applied to the value of goods and services in all years when calculating real GDP. -Price changes are separated from quantity changes when calculating real GDP.The economy is in a short-run equilibrium when...*All the rest* -GDP equals total spending. -total production equals total spending. -total production equals aggregate expenditures.Short-run, macroeconomic equilibrium is when...total output/GDP/production equals total spending/AEWhen analyzing AE, it is important to know the factors that determine C, Ip, G and NX because those factors...influence the level of AE and help us understand the GDP in the economy.Consider the graph of the consumption function. The horizontal axis of the function is measuring ​ __, while the vertical axis is measuring​ ___.real​ GDP; real consumption spending.The Y=AE line (equilibrium/45°-line) shows...all the points where aggregate expenditure equals real GDP.Which of the following is the best description of the multiplier effect?an increase in expenditures causes a larger increase in real GDP.