EBK EXPLORING MACROECONOMICS
7th Edition
ISBN: 9780100546400
Author: Sexton
Publisher: YUZU
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Question
Chapter 11, Problem 11P
a) Next year's real GDP exceed next year's nominal GDP
To determine
Whether the next year's real GDP can exceed the next year's nominal GDP
b) Real GDP grow and simultaneously real GDP per capita falls
To determine
If the real GDP can grow and at the same time can the real GDP per capita falls
c) People's real consumption possibilities expand at the same time real GDP per capita falls.
To determine
Can people's real consumption possibilities expand at the same time real GDP per capita falls.
d) How changing amount of leisure complicate comparisons of real well-being over time
To determine
How the changing amount of leisure complicate comparisons of real well-being over time
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1. The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called
A) real GDP.
B) nominal GDP.
C) actual GDP.
D) potential GDP.
2. Potential GDP is
A) the maximum GDP that an economy actually achieves throughout its entire history.
B) the level of GDP achieved during periods when 100 percent of the labor force is employed.
C) a goal that can never be achieved by the economy.
D) the maximum amount of GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation.
3. The relationship between real GDP and potential GDP is that
A) real GDP always equals potential GDP.
B) real GDP never equals potential GDP.
C) real GDP fluctuates about potential GDP.
D) real GDP is always below potential GDP.
4. The income approach to measuring GDP sums together
A) compensation of employees, rental income, corporate profits, net…
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