1. Which of the following would NOT remove the effect of inflation as it measure

Question

1. Which of the following would NOT remove the effect of inflation as it measures the value of all national output?
I. Real gross domestic product (GDP)
11. Nominal GDP
(A) I only
(B) II only
(C) Both I and II
(D) Neither I nor II
;;;;;;;;;;;;;;;;;;;;

2. Which of the following economic cycles is characterized by a rise in demand for goods, a stabilization of corporate profits, and an increase in economic activity?

(A) Peak

(B) Contraction

(C) Expansion

(D) Recovery

;;;;;;;;;;;;;;;;;;;;;;;;

3. Which of the following economic cycles is characterized by significant excess production capacity?

(A) Peak

(B) Trough

(C) Expansion

(D) Contraction

;;;;;;;;;;;;;;

4. Real gross domestic product will FALL as result of

(A) decreasing government purchases

(B) increasing taxes

(C) increasing government purchases (D} Both A and B

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

5.

372. Which of the following would NOT be considered expansionary fiscal policy?

I. An increase in taxes

II. A decrease in government spending

(A) I only

(B) II only

(C) Both I and II

(D) Neither I nor II

please explain answer

Explanation / Answer

1. Ans) B (Nominal GDP)

Nominal GDP refers to the aggregate market value of the economic output produced in a year within the boundaries of the country and without the effect of inflation.

Real GDP refers to the value of economic output produced in a given period and adjusted according to the changes in the general price level.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

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