Suppose a small economy produces only smart TVs. In year one, 100,000 TVs are produced and sold at a price of $1,200 each. In year two, 100,000 TVs are produced and sold at a price of $1,000 each. As a result, Multiple Cholce real GDP stayed the same. real GDP Increased. real GDP decreased. nominal GDP stayed the same.
Suppose a small economy produces only smart TVs. In year one, 100,000 TVs are produced and sold at a price of $1,200 each. In year two, 100,000 TVs are produced and sold at a price of $1,000 each. As a result, Multiple Cholce real GDP stayed the same. real GDP Increased. real GDP decreased. nominal GDP stayed the same.
Chapter11: Gross Domestic Product
Section: Chapter Questions
Problem 4SQP
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