Suppose that nominal GDP in 2005 was less than real GDP in 2005. Given this information, we know for certain that 17) ______ A) real GDP in 2005 was greater than real GDP in the base year. B) the price level in 2005 was greater than the price level in the base year. C) the price level in 2005 was less than the price level in the base year. D) real GDP in 2005 was less than real GDP in the base year.
In 2007, Kendall Ford, an automobile dealership, spends $20,000 on a new car lift for its repair shop, $2,000 on a new copy machine for its sales division, and $500,000 on Ford Motor company stock. Unsold cars and trucks were valued at $900,000 on January 1, 2007 and unsold cars and trucks were valued at $600,000 on December 31, 2007. What is Kendall Ford’s total investment spending in 2007? 13) ______ A) $22,000 B) $922,000 C) $322,000 D) $522,000
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