Why willl nominal GDP growth rates typically be higher than real GDP growth rates? a. because...
Why willl nominal GDP growth rates typically be higher than real GDP growth rates?
a. because prices generally decreases
b. because GDP generally decreases
c. Because prices generally increase
d. because GDP generally increases
Homework Answers
Answer
Option c
Because prices generally increase
the nominal GDP is a GDP not adjusted for prices and the real GDP is a GDP adjusted for prices as the prices generally increases over the time so the nominal GDP growth rate has to components increase in prices and increase in real GDP but real GDP has only changed in the real GDP means the quantity of production so the nominal GDP growth rates typically be higher than real GDP growth rates.
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Why willl nominal GDP growth rates typically be higher than real
GDP growth rates?
a. because...
1. If real GDP equals nominal GDP, then: A. the growth in output was greater than...
1. If real GDP equals nominal GDP, then: A. the growth in output was greater than the growth in the price level. B. there was no inflation. C. the current year is the base year. D. output did not grow. E. the growth in output was equal to the growth in the price level. 2. Nominal GDP is GDP measured in: A.base prices. B.fixed prices. C. current prices. D. marginal prices. E. average prices. 3. When you include discouraged workers...
A real shock is any shock that increases or decreases the growth rate of: real GDP....
A real shock is any shock that increases or decreases the growth rate of: real GDP. potential GDP. prices. O nominal GDP
13. If nominal GDP is growing at a higher rate than real GDP, one can cong...
13. If nominal GDP is growing at a higher rate than real GDP, one can cong a. The price level must be rising b. The price level must be falling c. Real output must be declining d. No conclusion can be reached relative to real output or the price level
When computing economic growth, changes in nominal gross domestic product (GDP) must be adjusted to reflect...
When computing economic growth, changes in nominal gross domestic product (GDP) must be adjusted to reflect population growth because: Choose one: A. changes in population tend to have no effect on standard of living. B. if real GDP remains the same, an increase in the population actually means a raised average standard of living .C. an increase in the population will tend to decrease average prices. D. an increase in population will tend to reduce nominal GDP. E. if real...
QUESTION 8 Higher rates of inflation would tend to: O a. increase velocity and decrease nominal...
QUESTION 8 Higher rates of inflation would tend to: O a. increase velocity and decrease nominal GDP b. decrease velocity and increase nominal GDP c. increase velocity and increase nominal GDP e d. increase velocity and increase real GDP e. decrease velocity and decrease nominal GDP
When real GDP grows more slowly than potential GDP, a. nominal GDP rises. b. the unemployment...
When real GDP grows more slowly than potential GDP, a. nominal GDP rises. b. the unemployment rate falls. c. labor productivity falls. d. the unemployment rate rises. 8. The unemployment rate is the number of unemployed people, expressed as a. a ratio of total employed to the population. b. a ratio of unemployed to the total employed. c. a percentage of the labor force. d. a percentage of the population. 9. If part of the labor force is unemployed, the...
Actual GDP (S Billions) Actual GDP growth rate Real GDP (S Billions) Real GDP growth rate(...
Actual GDP (S Billions) Actual GDP growth rate Real GDP (S Billions) Real GDP growth rate( GDP Price Deflator Rate of inflation Az? 800 100 842 D-? 3% B-7 820 0.714 E#7 01.980 6. The dollar amount of cell A is a) $700 b) $800 c) $850 d) $900 7. The dollar amount of cell B is a) $780 b) $808 c) $827 d) $842 8. The GDP price deflator in cell C (first decimal; no rounding) is a) 100.8...
Consider the following data on U.S. GDP: The growth rate of nominal GDP between 1995 and...
Consider the following data on U.S. GDP: The growth rate of nominal GDP between 1995 and 2015 was __________, and the growth rate of the GDP deflator between 1995 and 2015 was __________. Measured in 2009 prices, real GDP was __________ billion in 1995 and __________ billion in 2015. The growth rate of real GDP between 1995 and 2015 was __________. The growth rate of nominal GDP between 1995 and 2015 was __________ than the growth rate of real GDP.
Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate -...
Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate - Inflation rate - Population growth rateThis equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when calculating this rate. However, the simplified equation both is easy to use and results in small error terms when inflation, nominal GDP growth, and population growth are low, and so it is a useful approximation. The...
In your own words, what is the difference between "real GDP growth" and "nominal GDP growth"...
In your own words, what is the difference between "real GDP growth" and "nominal GDP growth" and why do we care?
A real shock is any shock that increases or decreases the growth rate of: real GDP. potential GDP. prices. O nominal GDP
13. If nominal GDP is growing at a higher rate than real GDP, one can cong a. The price level must be rising b. The price level must be falling c. Real output must be declining d. No conclusion can be reached relative to real output or the price level
QUESTION 8 Higher rates of inflation would tend to: O a. increase velocity and decrease nominal GDP b. decrease velocity and increase nominal GDP c. increase velocity and increase nominal GDP e d. increase velocity and increase real GDP e. decrease velocity and decrease nominal GDP
Actual GDP (S Billions) Actual GDP growth rate Real GDP (S Billions) Real GDP growth rate( GDP Price Deflator Rate of inflation Az? 800 100 842 D-? 3% B-7 820 0.714 E#7 01.980 6. The dollar amount of cell A is a) $700 b) $800 c) $850 d) $900 7. The dollar amount of cell B is a) $780 b) $808 c) $827 d) $842 8. The GDP price deflator in cell C (first decimal; no rounding) is a) 100.8...
Consider the following data on U.S. GDP: The growth rate of nominal GDP between 1995 and 2015 was __________, and the growth rate of the GDP deflator between 1995 and 2015 was __________. Measured in 2009 prices, real GDP was __________ billion in 1995 and __________ billion in 2015. The growth rate of real GDP between 1995 and 2015 was __________. The growth rate of nominal GDP between 1995 and 2015 was __________ than the growth rate of real GDP.
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