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Unformatted text preview: hought to be important determinants of the health of the economy. D. Analysts measure the cost of a bundle of goods representative of overall spending at two points in time and compare the difference in cost. 37. In 2009, the GDP deflator was 150 and nominal GDP was $3,500. Real GDP was ________ . A. $2,333 B. $5,250 C. $4,667 D. $2,000 E. [None of the above] 38. Donna, a confirmed chocoholic, notices that her favorite candy bar shrank in size, but the price remained the same. This type of product shrinkage will cause the official CPI to A. accurately measure the rate of inflation. B. understate the rate of inflation. C. overstate the rate of inflation. D. [All of the above could be true] 39. Suppose Purdue’s men’s basketball team is ranked #1 in preseason polls next year, at the same time that Mackey Arena is expanded to hold an additional 5,000 seats. What happens in the market for these basketball tickets? A. Equilibrium price decreases, but the effect on quantity is uncertain....
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This test prep was uploaded on 02/19/2014 for the course ECON 252 taught by Professor Robertholand during the Fall '08 term at Purdue University-West Lafayette.
- Fall '08