« previous next »

Author Question: Why does inflation make nominal GDP a poor measure of the increase in total production from one year ... (Read 41 times)

809779

  • Hero Member
  • *****
  • Posts: 579
on: Jun 29, 2018
Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?
 
  What will be an ideal response?

Question 2

Refer to Figure 2-5. If the economy is currently producing at point X, what is the opportunity cost of moving to point W?
 
  A) 19 million tons of steel B) 5 million tons of paper
  C) 9 million tons of paper D) 3 million tons of steel


pratush dev

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 29, 2018
Answer to Question 1

Nominal GDP can change because of either quantity changes or price changes. When there is inflation, nominal GDP overstates the increase in total production.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

809779

  • Hero Member
  • *****
  • Posts: 579
Reply #2 on: Jun 29, 2018
Correct answers!


pratush dev

  • Sr. Member
  • ****
  • Posts: 321
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Cause of Inflation Cause of Inflation
Performing a Spirometry Test to Measure Forced Vital Capacity Performing a Spirometry Test to Measure Forced Vital Capacity
The Increase in Divorce The Increase in Divorce
Find the lateral area, total surface area, and volume of the frustum Find the lateral area, total surface area, and volume of the frustum
Production and Prices in Richland and Poorland Production and Prices in Richland and Poorland
Examples of Polypeptide Production from Synthetic mRNAs Examples of Polypeptide Production from Synthetic mRNAs
Video: Control of ventilation rate by other brain centers (posts, hypothalamus & cerebral cortex)

For a complete list of videos, visit our video library