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Anarel [89]
2 years ago
9

In the base year in a small island macroeconomy, nominal GDP was $400m. In a later year when the general level of all prices was

twice as high, nominal GDP reached $1000m. Between the base year and the later year: A. Real GDP declined. B. There was real GDP growth by more than 100% C. There was real GDP growth, but by less than 100% D. Inflation occurred.
Business
1 answer:
Cerrena [4.2K]2 years ago
8 0

Answer:

Both options C and D are correct.

Explanation:

Inflation refers to an increase in the general price level of goods and services overtime. Since it is conveyed in the question that the general price level in a later year became twice as high, inflation definitely occurred. Hence, option D is correct.

Nominal GDP is the value of the total output at current market prices. Real GDP adjusts that value for inflation. As prices double, nominal GDP ought to increase from $400m to $800m. However, it actually rose to $1000m. This additional increase of $200m shows that the real GDP has risen. However, the increase in real GDP is less than 100%. This implies option C is also correct.  

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<h3>What is company?</h3>

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#SPJ1

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4 0
1 year ago
Unlike the early stock exchanges, National Association of Securities Dealers Automated Quotation System (NASDAQ) has never:
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8 0
3 years ago
To receive a loan from the imf, a country must agree to make economic reforms. join the group of 20. agree to develop certain in
ValentinkaMS [17]

To receive a loan from the imf, a country must agree to make economic reforms and conditions related to that loans.

<h3>What are the condition to receive a loan from IMF?</h3>
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  • It has to follow the conditions associated with loans, debt relief and financial aid.

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6 0
1 year ago
Read 2 more answers
Suppose the price of gasoline increases and that sport utility vehicles get poor gas mileage compared to other available cars. O
a_sh-v [17]

Answer:

b

Explanation:

If the sport utility vehicle has a bad mileage, it means that it burns fuel quickly, so you would have to buy gasoline more frequently.

sport utility vehicle is a complement for gasoline

Complementary goods are goods that are consumed together

If the price of gasoline increases, it would become more expensive to maintain sport utility vehicle. As a result, the demand for sport utility vehicle would decrease. this would shift the demand curve for sport utility vehicle inward.

A increase in the price of gasoline would result in a decrease in the quantity demanded of gasoline and not a reduction in demand.

7 0
3 years ago
If you invest $2,000 today for three years at 5% interest paid annually, you will earn a total of $______ in interest. Assume yo
Usimov [2.4K]

Answer:

Option (C) is correct.

Explanation:

Given that,

Amount invested today = $2,000

Interest paid annually(r) = 5%

Time period(n) = 3 years

Future\ value=Present\ value\times(1+r)^{n}

Future\ value=2,000\times(1+0.05)^{3}

Future\ value=2,000\times(1.05)^{3}

                            = $2,315.25

Therefore,

Total amount earn:

= Future value - Present value

= $2,315.25 - $2,000

= $315.25

8 0
3 years ago
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