Question: if the price index is greater than 100, then 1) nominal GDP is greater than real GDP. 2) nominal GDP is lower than real GDP.

if the price index is greater than 100, then 1) nominal GDP is greater than real GDP. 2) nominal GDP is lower than real GDP. 3) nominal GDP equals real GDP 4) prices decrease by more than double between the cirrent and base year.

Step by Step Solution

★★★★★

3.41 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Price index is given by Cost of basket in current year100 cost of basket in base y... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

An investor purchased 200 shares of Mallard common stock at $20 per share on March 15. On December 31, the stock was quoted at $19 per share and Mallard declared and paid a dividend of $1.50 per...

By definition, is nominal GDP higher than real GDP?

If you learn that nominal GDP for 2011 is greater than nominal GDP for 2010, what do you know about changes in the level of output during this period? Changes in prices during this period? Would your...

Income statements for the current year and one year ago follow. Assume that all sales are on credit. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense...

A recent report of the consulting firm McKinsey & Company indicates that about one-half of all corporate alliances fail. These alliances are partnerships in which two corporations jointly participate...

9-41. Creative Homework/Short Project. You may think of your college or university as an organization that offers a line of different educational products. Assume that you have been hired as a...

Give an example of a self-defeating attitude and the vicious cycle it creates.

One company purchases the outstanding debt instruments of an affiliated company on the open market. This transaction creates a gain that is appropriately recognized in the consolidated financial...

Required information Problem 7-8A Record the disposal of equipment (L07-6) [The following information applies to the questions displayed below) New Morning Bakery is in the process of closing its...

1. a) Why do you disagree with Jack's comments about the uselessness of the regression due to the low R-squared? (b) Can you think of a situation in which a useless regression has a high R-squared?...

could you help me to calculate the income for these 6 pointsplease . Robyn McCreary is an Australian resident. She works full-time as an academic for an Australian University, TUQ, in Brisbane. Robyn...

In the document the Irish Building Regulations TGD Part L What limitations does the document have

don't copy paste previous answers i am already report that answers Noah and Kelly know that small businesses need to have a presence on the web to attract customers. However, they are not sure how...

1. (20 points) Consider the dataset given in the table below. The data corre- sponds to US national unemployment rates for males (y;) and females (x). Males Females 2.9 4 7.7 7.4 4.9 5 7.9 7.2 9.8...

BiggerBetter Widgets Co. makes World-Class Widgets using a relatively simple process (see flow chart below) with the following parameters. Their factory works from 9 AM to 5 PM; all operations shut...

You invest $138 today. After 11 years will you have $229. What simple interest rate did you earn on your investment? Answer as a decimal. Round to the nearest ten thousandth.

Problem 11-8 Evaluating Health Insurance Options (LO11-4] Ronald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains...

Should U.S. antidumping laws be stated in terms of average total costs or average variable costs?

Restrictive monetary policy will lower the rate of labor productivity growth. Restrictive fiscal policy, on the other hand, will raise it. Is this statement true, false, or uncertain? Explain.

Suppose that the demand for dollars is given by the equation D$ = 2,800 - 200ex and the supply of dollars is given by the equation S$ = 400 + 100ex. Therefore the equilibrium exchange rate is your...

What are the four main reasons for inflation? Explain how each results in an excessive growth rate of nominal GDP.

Consider the following data (y, x) from a CRD, where y represents the response after treatment, and is a covariate. (i) Analyze the data, ignoring the covariate, that is, (a) obtain treatment means,...

An experiment was conducted to compare six different management techniques (such as pruning, spraying and fertilizing) for apple trees with respect to yield. Each apple tree represents an...

7.2 Consider a CRD with 5 treatments, 6 replications for each treatment and 4 obser- vations for every experimental unit. Suppose the treatments represent increasing amounts (x) of fertilizer applied...

Related Book

Macroeconomics 12th edition by Robert J Gordon