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Question: Real versus nominal GDP (a FRED question): Using the FRED database, locate notice that there are both annual and quarterly data (i.e., measures of production every 3 months) available. For the purpose of this question, let's stick with the to find this is to type "annual nominal GDP" and "annual real GDP into the FRED search box. (For an introduction to FRED, see the case study "The FRED Database" earlier in this chaper on page 34.)
(a) What is the value of real GDP and nominal GDP for the most recent the data on real and nominal GDP for the U.S ou annual data. The easy way f year available? Explain why these numbers are different?
(b) What was the value of real GDP and nominal GDP in 1970?
(c) By what factor (e.g., a number like 2.0 if it doubled) did real GDP increase between 1970 and the most recent year? What about nominal GDP?
(d) What explains the difference between the two numbers in part (c)?
determine what fiscal policy measure has a more direct impact to the economy1. an increase in government spending or2.
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Suppose there are two firms that produce two different goods, one with a price elasticity of demand of -0.3 and the other with a price elasticity of demand.
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