Real GDP, as opposed to money (nominal) GDP, has been adjusted for changes in the general level of ...

Real GDP, as opposed to money (nominal) GDP, has been adjusted for changes in the general level of prices.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

In the upward-sloping segment of the aggregate supply curve,
 a. when GDP increases, the price level rises.
  b. when GDP increases, the price level does not change.
  c. when GDP decreases, the price level rises.
  d. when GDP increases, the price level falls.
  e. there is no relationship between changes in GDP and changes in the price level.

QUESTION 3

A policy to do nothing and allow the economy to self-correct or adjust without interference from the federal government is also called a(n) _______________ policy:
 a. nonintervention
  b. active
 c. stabilization
 d. fixed rule

QUESTION 4

In any year, nominal GDP divided by the GDP chain price index times 100 equals real GDP.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

In the horizontal segment of the aggregate supply curve, when GDP:
 a. increases, the price level rises.
  b. decreases, the price level falls.
  c. increases, the price level does not change.
  d. increases, the price level falls.
  e. increases, the price level first rises and then falls.

QUESTION 6

Assume the economy is operating at a real GDP above full-employment real GDP. Keynesian economists would prescribe which of the following policies?
 a. Nonintervention
  b. Fixed rule
 c. Contractionary
 d. Expansionary