1. TRUE/FALSE(1 mark per question, 20 marks in total) [1] An economy\'s income i
ID: 1146933 • Letter: 1
Question
1. TRUE/FALSE(1 mark per question, 20 marks in total) [1] An economy's income is the same as its expenditure because every transaction has a buyer and a seller. 12) GDP is the market value of all final goods and services produced by a country's citizens in a given period of time 18] If nominal GDP is S10,000 and real GDP is $8,000, then the GDP deflator is 125. 14] Other things equal, in countries with higher levels of real GDP per person, life expectancy and literacy rates are higher than in countries [s] When the consumer price index falls, the typical family has to spend 16] Economists use the term inflation to describe a situation in which the 17] When a new good is introduced, consumers have more variety from with lower levels of real GDP per person. fewer dollars to maintain the same standard of living. economy' s overall price level is rising. which to choose, and this in turn increases the cost of maintaining the same level of economic well-being. 18] The real interest rate is the interest rate corrected for inflation. 9l Like physical capital, human capital is a produced factor o production.Explanation / Answer
1) True . (Income= Expenditure) (in an economy)
2) True (GDP is correctly defined)
3) True ( Gdp deflator is rightly calculated)
4) True (Assumption holds)
GDP Deflator = (NOMINAL GDP/REAL GDP)*100
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.