For the Following Question(s), Suppose That an Economy Produces Only

question 27

Multiple Choice

For the following question(s) , suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below.

-Year 1 nominal GDP is

• A) $200.
• B) $270.
• C) $310.
• D) $390.
• E) $450.

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Definitions:

Impact Lag

The time taken between the implementation of an economic policy and the occurrence of its intended effects on the economy.

Federal Budget Deficit

The scenario in which the spending of the federal government surpasses its income within a specific fiscal year.

Discretionary Fiscal Policy

Economic policies based on government spending and taxation that are employed to manage economic fluctuations and steer the economy.

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without direct intervention by policymakers.