The Purchasing Power of One Dollar Is Equal to _____

question 37

Multiple Choice

The purchasing power of one dollar is equal to _____.

• A)real GDP divided by nominal GDP
• B)nominal GDP divided by real GDP
• C)1 minus the average price level
• D)the reciprocal of the average price level
• E)the implicit GDP deflator divided by the CPI

Identify the effects of changes in GDP on a nation's economic health.

Understand the relationship between GDP per capita and quality of life measures.

Interpret the impact of economic policies on GDP and overall economic welfare.

Understand the concept of asymmetric information in economics.