2 - Analysts adjust GDP for inflation)A in order to"inflate...

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Analysts adjust GDP for inflation: ( ) A) in order to "inflate" the numbers to make them look better. (X) B) in order to provide jobs for economists. ( ) C) in order to correct for non- market output produced within households, which inflates GDP. ( ) D) so that the rate of change in GDP represents economic growth. Feedback: When GDP is adjusted for inflation, the change in GDP shows economic growth. When real GDP grows more rapidly than population: (X) A) per capita income also increases. ( ) B) per capita income decreases because population growth is too small to support economic growth. ( ) C) per capita income could either increase or decrease. ( ) D) living standards decline. Feedback: If GDP is increasing faster than population, this means that per capita income is also increasing. Most of the output of the United States: ( ) A) represents spending by consumers. ( ) B) represents investment by businesses. (X) C) represents spending by government. ( ) D) is exported to other countries. Feedback: Consumption, spending by consumers, represents the largest portion of output. Nominal GDP means ________.
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( ) A) current dollars (X) B) constant dollars ( ) C) adjusted for inflation ( ) D) None of the above is true. Feedback: Nominal GDP is the value of output measured in current prices. Which of the following is the most common form of business organization? ( ) A) Proprietorships ( ) B) Partnerships (X) C) Corporations ( ) D) None of the above is true. Feedback: Proprietorships are the most common form of American business firm.
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2 - Analysts adjust GDP for inflation)A in order to"inflate...

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