nominal gdp is dependent on\na. only output.\nb. the price level and output.\nc. only the price level.\nd…

nominal gdp is dependent on\na. only output.\nb. the price level and output.\nc. only the price level.\nd. the price level, wages and interest rates.\nif the price level rises the multiplier effect on real gdp will be\na. unknown.\nb. stronger than if the price level were constant.\nc. weaker than if the price level were constant.\nd. the same as if the price level had not changed.

nominal gdp is dependent on\na. only output.\nb. the price level and output.\nc. only the price level.\nd. the price level, wages and interest rates.\nif the price level rises the multiplier effect on real gdp will be\na. unknown.\nb. stronger than if the price level were constant.\nc. weaker than if the price level were constant.\nd. the same as if the price level had not changed.

Answer

Brief Explanations:

  1. Nominal GDP is calculated as the sum of the price level times the quantity of output produced in an economy. So it depends on both the price level and output.
  2. When the price level rises, the multiplier effect on real GDP is weaker. This is because as the price level increases, the real - value of money decreases, and some of the additional spending is absorbed by higher prices rather than leading to an increase in real output, reducing the impact of the multiplier.

Answer:

  1. B. the price level and output.
  2. C. weaker than if the price level were constant.