Ou SLessment d82995 18course id- 263 GDP can rie as a result of a rise in O A pr

Question

Ou SLessment d82995 18course id- 263 GDP can rie as a result of a rise in O A prices or output, pricesonly o B prices on prices or output O C prices or output, output only O D. prices or output; prices or output and Real GDP can rise as a esult of a rise in QUESTION 29 One of the reacons why the AD curve slopes downward is that es the A price level ries, purchasing power rises e price levelfalls, purchasing power rises C. nanon's income level rises, purchasing power rses 0 nston's income level riespurchas ng power falls E This is a trick question, be cause the AD curve s upward sloping QUESTION 30 The base year is the ear

Explanation / Answer

Question 28 Option C

Nominal GDP is the GDP calculated at current prices which can get influenced by both price and output while Real GDP is the GDP calculated by adjusting the prices for inflation which is influenced only by output.

Question 29 Option B

When the price level falls, the real money balance increases, which increases purchasing power of individuals making people to consume more which is why the AD curve slopes downward.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.