If real GDP falls and the nominal interest rate rises, then the equilibrium price level A. must fall. B. must rise. C. will fall if the effect of the decline in real GDP dominates. D. will fall if the effect of the increase in the nominal interest rate dominates....
If real GDP per capita in the United States is $8,000, what will real GDP per capita in the United States be after 5 years if real GDP per capita grows at an annual rate of 3.2%? What is the value of using real GDP instead of nominal GDP? Who are the buyers of real...
The gross domestic product (GDP) refers to the final merit of an economy's products and services during a given period, often annually. The GDP is used to measure the progress of a country since its growth rate is an essential indicator ...
If real GDP falls from one period to another, we can conclude that: A) deflation occurred. B) inflation occurred. C) nominal GDP fell. D) none of these necessarily occurred. There’s just one step to solve this. Solution 100% (3 ratin...
If nominal GDP grew by 5 percent and the real GDP grew by 3 percent, the GDP deflator grew by approximately what percent? a. 2 b. 3 c. 5 d. 8 GDP and Inflation: Nominal GDP uses current prices and current levels...
If the marginal product of employment is falling, then the average product of employment must fall. Is the statement true or false? Explain. Marginal Product: The marginal product of employment is the additional number of units produced whe...
back in the real GDP growth path as I expected. Hence, I have to start asking whether I was wrong about potential real GDP being higher for many years, or is it some combination of the pandemic having damaged the economy more than expected and/or the recovery taking longer than expected....
(3) Investors seeking stronger “fall protection” will have to consider tail-risk hedging strategies (more on this later) but will have to shell out the necessary costs as “big falls” may take years to recur. Now with that out of the way, let us get back to the titular question: ...
of the job. But that isn’t usually much more pleasant. Either way, domestic demand growth typically needs to be held below growth in the economy’s productive capacity for long enough to lower inflation. And, among other things, that will typically mean a rise in the unemployment rate, ...
An excellent outcome would be achieving a shortfall of 2% percent of GDP by the end of the FY 2030, a level that, if maintained in subsequent years, would keep the U.S. out of danger. Of course, a third scenario is also possible. If the U.S. simply lets spending run and doe...