Suppose That 1986 Is Our Base Year (Price Index Equals

question 60

Multiple Choice

Suppose that 1986 is our base year (price index equals 100) and that the 2000 price index was 200.If nominal GDP was $6.2 trillion in 2000,what was real GDP that year (measured in 1986 dollars) ?

• A)$3.1 trillion
• B)$6.2 trillion
• C)$12.4 trillion
• D)$18.6 trillion
• E)$24.3 trillion

Identify how to configure digital calendar settings to best suit user needs and preferences.

Understand the impact of culture and values on the perception of problems and solutions in welfare reform.

Recognize the preferences of legislators in funding programs based on the widespread problems versus problems with lower incidence.

Identify the factors contributing to the chronicity of social problems.

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Definitions:

Inadequate Aggregate Demand

A situation where the total demand for goods and services in an economy is not sufficient to produce full employment.

Recession

A decline in real GDP for two consecutive quarters.

Lowering Tax Rates

The act of reducing the percentage at which income or corporate profits are taxed, which can affect economic behaviors and government revenues.

Supply-siders

Economists who believe reducing barriers for people to produce (supply) goods and services, like lower taxes, will stimulate economic growth.