Author Question: If we knew that nominal GDP was currently 7500 billion, and that current GDP in dollars of 1992 ... (Read 35 times)

roselinechinyere27m · **on:** Jun 29, 2018

If we knew that nominal GDP was currently 7500 billion, and that current GDP in dollars of 1992 purchasing power was 5000 billion, what would we know about the GDP deflator?

A) It would be .667.
B) It would be 150.
C) Nothing until we had current information on the price level, such as consumer price index figures.
D) Only that a dollar buys more currently than it bought in 1992.
E) Only that a dollar currently buys less than it bought in 1992.

Question 2

What explains any divergence between nominal and real GDP?

A) Constant prices
B) Changing prices
C) Constant output
D) Changing output
E) None of the above.