A GDP deflator of 112 means: the overall output increased by 12 percent since th

Question

A GDP deflator of 112 means: the overall output increased by 12 percent since the base year. every price in the economy has gone up by 12 percent. the overall price level is 12 percent higher than in the base year. the production of each good in the economy has increased by 12 percent.

A good in the U.S. costs $5. The same good costs 60 pesos in Mexico. If the official exchange rate is 15 pesos per dollar then the American travelling to Mexico will feel like the good is _____ in Mexico than in the United States. This suggests prices in Mexico are _______ than prices in the United States. Cheaper : 25% lower Cheaper : 20% lower More expensive : 25% higher More expensive : 20% higher

A price index measures: expenditure in the current year divided by expenditure in a base year. expenditure in a base year divided by expenditure in the current year. the base cost of a fixed quantity of goods divided by the current cost of a fixed quantity of goods. the current cost of a fixed quantity of goods divided by the base cost of a fixed quantity of goods.

Assume the growth rate of real GDP falls from 4% to 2%. This means that the level or production has fallen. the level of production is growing more slowly. the price level is falling. the economy is in a recession.

At the end of the year, Ford realizes it has overproduced Fiestas, because 2,500 of them are left unsold. How is this accounted for in that year's GDP? The cars are considered inventory and their value will increase investment. None of these statements is true. The cars are considered durable goods, and their value will increase consumption. The cars are not counted until they are sold in next year's GDp

Gross domestic product is: the sum of the market values of all final goods and services produced within a country in a given period of time. the sum of the market values of all intermediate goods and services produced within a country in a given period of time. the sum of all final goods and services produced by a country's citizens in a given period of time. the sum of the market values of all final goods and services produced by a country's citizens in a given period of time.

If GDP has a value of $250 million and the population is 5,000 then the GDP per capita is: $5,000. $50,000. $12,500. $10,000.

Explanation / Answer

1. Cheaper : 25% lower

2. The level of production is growing more slowly

3. The cars are considered inventory and their value will increase investment.

4. $50,000

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