Author Question: If both the production of goods and services increase and prices rise, then the change in nominal ... (Read 55 times)

fox · **on:** Jun 29, 2018

If both the production of goods and services increase and prices rise, then the change in nominal GDP

A) definitely understates the change in production.
B) definitely accurately reflect the change in production.
C) definitely overstates the change in production.
D) either understates or might accurately reflect the change in production.
E) More information is needed to determine how the change in nominal GDP compares to the change in production.

Question 2

The value of the U.S. dollar bill is determined by

A) the quantity of gold in Fort Knox.
B) the quantity of gold in the Federal Reserve.
C) the quantity of gold in circulation.
D) the gold futures market.
E) none of the above.