Question

Which of these is the most ideal measure of aggregate output?

            a. nominal GDP          

            b. real GDP     

            c. gross national product       

            d. personal income    

            e. disposable income

How is GDP calculated?

a. by subtracting the value of all goods and services produced by the government and the value of those produced by the private sector      

b. by measuring the economy's price level during a particular year

c. by adding up the quantity of all goods and services in the economy       

d. by adding up the production of all goods and services in the economy  

e. by adding up the cost of all goods and services in the economy

Given an aggregate supply curve, a decrease in aggregate demand will _____

            a. increase the real interest rate.      

            b. increase the price level.     

            c. decrease the real exchange rate.  

            d. increase real GDP.

            e. decrease real GDP.

What occurred during the 1890s?

a. A U.S. economic expansion that became the longest on record.

b. Federal spending increased on both the war in Vietnam and social programs at home.

c. Home prices declined and foreclosures rose, as more borrowers failed to make their mortgage payments.

d. The outbreak of war boosted employment to fight for the country and to make tanks, ships, aircraft, and the like.

e. The economy contracted about half the time, and the unemployment rate topped 18 percent.

Answer 1

Hi! Welcome to Chegg!

Due to Chegg policy, I am answering first question.

Ans: b. real GDP.

Explanation: Real gross domestic product (real GDP for short) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e. inflation or deflation). This adjustment transforms the money-value measure, nominal GDP, into an index for quantity of total output. Other measures do not adjust for inflation.

If you are satisfied with the answer, please provide a positive rating. Feel free to comment in case of queries.

Have a nice day ahead!