Macroeconomics (7th Edition)
Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 8, Problem 8.3.6PA
To determine

Nominal GDP and Real GDP.

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Students have asked these similar questions
Inflation Can Act as a Safety Valve Workers will more readily accept a real wage cut that arises from an increase in the price level than a cut in their nominal wage rate. Source: FT.com, May 28, 2009 Explain why inflation influences a worker’s real wage rate. Why might this observation be true?
Briefly describe what is meant by the non-accelerating inflation rate of unemployment (NAIRU)
In early​ 2017, policymakers at the Federal Reserve forecast that real GDP during 2017 would increase faster than potential GDP and that the inflation rate for the year would be about 1.9 percent.   ​Source: Federal Open Market​ Committee, "Advance Release of Table 1 of the Summary of Economic Projections to be Released with the FOMC​ Minutes," March​15, 2017.   Fill in the missing values in the table with estimates that are consistent with these forecasts. Assume that the growth rate for real GDP between 2016 and 2017 is 0.32 percentage points higher than the percentage change in potential output between those years​ (rounded to two decimal​ places).     2016 2017 Real GDP ​$16.7 trillion ​$nothing trillion Potential GDP ​$16.9 trillion ​$17.1 trillion GDP Deflator 111.5 nothing   ​(Enter your responses rounded to one decimal​ place.)
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