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Which example BEST illustrates that GDP (gross domestic product) is not always a good indicator of economic health? </span><span><span>A)<span>The GDP falls when consumer spending declines.
</span></span><span>B)<span>Money spent repairing hurricane damage helps raise the GDP.
</span></span><span>C)<span>Goods produced for infrastructure projects help raise the GDP.
</span></span><span>D)<span>The GDP falls because scarcity of materials slows the rate of production.</span></span></span>
Answer:
The answer is: A) Farmers will substitute the production of other agricultural goods? (like soybeans) with corn.
Explanation:
When the price of a certain product increases so steeply, new suppliers will enter the market to offer their products.
Since farmers can only produce one crop at the time in a certain lot, they will always tend to produce the crop that gives them the highest profit. In this case if corn becomes very expensive, it is reasonable to assume that more farmers will produce corn by substituting others crops (like soybean or wheat).
Answer:
The correct answer is option C
When inflation is constant for an extended period of time,
C. People will correctly anticipate the actual inflation rate, and the actual rate of unemployment will approach the natural rate of unemployment.
Answer:
Option (C) is correct.
Explanation:
Nominal GDP:
= (No. of burgers sold × Selling price of each) + (No. of fries sold × Selling price of each)
= (4000 × 3) + (6000 × 1.5)
= 12,000 + 9,000
= $21,000
Real GDP (in 2008 prices)
= (No. of burgers sold × Selling price of each) + (No. of fries sold × Selling price of each)
= (4,000 × $2.50) + (6000 × $2)
= 10,000 + 12,000
= $22,000
GDP deflator:
= (Nominal GDP ÷ Real GDP) × 100
= (21000 ÷ 22000) × 100
= 95.45
A.
because as you're passing the page you are scanning it and looking for the answer
