Assume that an economy has 1,000 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will be
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Assume that an economy has 1,000 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real
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- Which of the following is true about the real GDP?a. It is equal to nominal GDP multiplied by the GDP deflator. b. It measures aggregate output using current prices. c. It measures aggregate output using constant prices.d. It is equal to the GDP deflator divided by nominal GDP.e. It is greater than nominal GDP when the GDP deflator is greater than 100.Part of a bridge built by the government of Ritzland collapsed in the same year it was constructed. If the total cost of building the bridge was $4 million, and then it costs $3 million to repair it, which of the following will happen in this scenario, everything else remaining unchanged? Ritzland's GDP will decrease by $4 million. Ritzland's GDP will increase by $3 million. Ritzland's GDP will increase by $7 million. Ritzland's GDP will increase by $1 millionHello, Can you answer: - Calculate the real GDP for 2013.- Calculate the growth rate in real GDP for 2012. (Using 1 decimal place)- Calculate the growth rate in real GDP for 2013. (Using 1 decimal place)- Calculate the cost of the market basket for 2011. (Using 1 decimal place)- Calculate the cost of the market basket for 2012. (Using 1 decimal place)- Calculate the cost of the market basket for 2013. (Using 1 decimal place)
- True or false? Consider two economies that spend different shares of their gross domestic product to R&D activities. Is it true that the economy with a larger share of R&D spending grows faster in the long-run?How Real GDP is measured? Explain Real GDP of the United States at present time.You looked at many economic indicators, including data regarding unemployment, GDP, housing starts, and consumption spending. Which of the following economic indicators NOT including those four would you likely see to support this analysis of the economy? The consumer confidence index is likely rising Inflation (the general price level of goods and services) is likely increasing Stock share prices are likely decreasing New businesses are likely being opened
- if an economy produces 50 oranges sold at $1 each and 100 bananas at $0.50 each, using GDP as the measure of output: a. oranges are weighted as being 2 times more important than bananas. b. oranges are weighted as being 1/2 as important as bananas. c. bananas are weighted as being 2 times more important than oranges. d. bananas are weighted as being 1/2 as important as oranges.According to many economists, production that occurs in the underground economy a. is accurately accounted for by the Bureau of Economic Analysis in its measurement of GDP b. has no market value and therefore should not be included in GDP c. is given insufficient weight by the Bureau of Economic Analysis, causing GDP statistics to understate true output d. is given too much weight by the Bureau of Economic Analysis, causing GDP to overstate true outputSuppose an economy consists of only three goods, as shown in this Table: What is real GDP in 2020 and 2021? How much (in percentage terms) did real GDP change between 2020 and 2021?
- In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________. Question options: a) physical capital b) a production function c) human capital d) an aggregate production functionThe magazine Women of China reported that Chinese women in big cities spent 63% of their income on consumer goods last year, up from a meagre 26% in 2007. Clothing accounted for the biggest chunk of that spending, at nearly 30%, followed by digital products such as cellphones and cameras (11%) and travel (10%). Chinese consumption as a whole grew faster than the overall economy in the first half of the year and is expected to reach 42% of GDP by 2020, up from the current 36%. Source: The Wall Street Journal, August 27, 2010 If the economy had been operating at a full employment equilibrium, (a) Describe the macroeconomic equilibrium after the rise in consumer spending. (b) Explain and draw a graph to illustrate how the economy can adjust in the long run to restore a full-employment equilibrium.Which of the following will NOT lead to an increase in real GDP? A. On average, people in a country decide to increase the number of hours they work by 5%. B. Spending on homeland security increases in response to a terrorist attack. C. The price level and nominal GDP increase by 10%. D. Due to lower interest rates by the Fed investors increase their investments
