QUESTION 6 Refer to the accompanying data, using year 1 as the base year, All dollars are in billions. Real GDP increased from year 3 to year 4 by approximately 首 Year Nominal GDP Price Index 1 $3,166 100 3,402 104 3 3,774 108 4 3,989 112 O a. $68 billion. O b. $98 billion. OC. $215 billion. 4d. S75 billion

Suppose the Federal Reserve begins to Increase the supply of money at an Increasing rate. What Impact would that have on GDP, unemployment, and inflation?

Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines A greater variety of goods become available to consumers Infant mortality declines

Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?

What is the difference between a series of economic data over time measured in nominal terms versus the same data series over time measured in real terms?

According to Table 19.7, how often have recessions occurred since the end of World War II (1945)?

What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?

Without looking at Table 19.7, return to Figure 19.10. If we define a recession as a significant decline in national output, can you identify any post-1960 recessions in addition to the 20082009 recession? (This requires a judgment call.)

Is it possible for GDP to rise while at the same time per capita GDP is falling? Is it possible for GDP to fall while per capita GDP is rising?

What is potential GDP?