« previous next »

Author Question: Why does inflation make nominal GDP a poor measure of the increase in total production from one year ... (Read 58 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?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Using a goniometer to measure joint ROM. Using a goniometer to measure joint ROM.
April Greiman, Does It Make Sense? April Greiman, Does It Make Sense?
In the past year, about one in five adults in the United States reported symptoms of anxiety ... In the past year, about one in five adults in the United States reported symptoms of anxiety ...
Electric and butane-powered soldering guns used to make electrical repairs. Soldering guns are sold ... Electric and butane-powered soldering guns used to make electrical repairs. Soldering guns are sold ...
Production of ATP in Skeletal Muscle Production of ATP in Skeletal Muscle
Walking into new year kids drawing Walking into new year kids drawing
Video: Vasectomy

For a complete list of videos, visit our video library