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Refer to TABLE 1. In 2012, this country's real GDP was: a $510 b $690 c $930 d $780

$930

In 2012 the nominal GDP was $18 billion and the GDP deflator was 120, what was real GDP? a $6.7 billion b $15 billion c $40 billion d $100 billion

$15 Billion

Refer to TABLE 1. In 2012, this country's GDP deflator was: a 74.2 b 100 c 171.4 d 240

74.2

Nominal GDP will definitely increase when a prices increase and output increases. b prices increase and output decreases. c prices decrease and output increases. d All of the above are correct.

prices increase and output increases.

Refer to TABLE 1. In 2010, this country's nominal GDP was: a $260 b $440 c $620 d $760

$260

If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP? a $2.5 billion. b $10 billion. c $40 billion. d $100 billion

$40 billion.

Refer to TABLE 1. In 2011, this country's nominal GDP was: a $260 b $440 c $620 d $760

$440

Refer to TABLE 1. In 2010, this country's real GDP was: a $620 b $260 c $400 d $630

$620

Refer to TABLE 1. In 2011, this country's real GDP was: a $320 b $440 c $760 d $770

$760

In the base year, the GDP deflator is always equal to: a -100 b 0 c 200 d 100

100

Refer to TABLE 1. In 2013, this country's GDP deflator was: a 1 b 100 c 171.4 d 240

100

Refer to TABLE 1. This country's inflation rate from 2012 to 2013 was: a 35.6% b 25.8% c 34.8% d 100%

34.8%

If nominal GDP is $8 trillion and real GDP is $10 trillion, then the GDP deflator is a 80, and this indicates that the price level has decreased by 20 percent since the base year. b 80, and this indicates that the price level has increased by 80 percent since the base year. c 125, and this indicates that the price level has increased by 25 percent since the base year. d 125, and this indicates that the price level has increased by 125 percent since the base year.

80, and this indicates that the price level has decreased by 20 percent since the base year.

If in some year nominal GDP was $28 trillion and real GDP was $32 trillion, what was the GDP deflator? a 87.5. b 114.3 c 400 d 896

87.5

Refer to TABLE 1. In 2013, this country's real GDP was: a $500 b $700 c $900 d $1,200

No Correct Answer

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise? a Both real GDP and nominal GDP. b Real GDP but not nominal GDP. c Nominal GDP but not real GDP. d Neither nominal GDP nor real GDP.

Nominal GDP but not real GDP.

Which of the following is correct? a Nominal GDP is always less than real GDP. b Nominal GDP is always greater than real GDP. c Nominal GDP equals real GDP in the base year. d Nominal GDP equals real GDP in all years but the base year.

Nominal GDP equals real GDP in the base year.

Suppose an economy produces only eggs and ham. In 2009, 100 dozen eggs are sold at $3 per dozen and 50 pounds of ham sold at $4 per pound. In 2010, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound. For 2009, a Nominal GDP is $400, real GDP is $500, and the GDP deflator is 80. b Nominal GDP is $400, real GDP is $500, and the GDP deflator is 125. c Nominal GDP is $500, real GDP is $400, and the GDP deflator is 80. d Nominal GDP is $500, real GDP is $400, and the GDP deflator is 125.

Nominal GDP is $500, real GDP is $400, and the GDP deflator is 125.

The GDP deflator is the ratio of a Real GDP to nominal GDP multiplied by 100. b Real GDP to the inflation rate multiplied by 100. c Nominal GDP to real GDP multiplied by 100. d Nominal GDP to the inflation rate multiplied by 100.

Nominal GDP to real GDP multiplied by 100.

If real GDP doubles and the GDP deflator doubles, then nominal GDP a Remains constant. b Doubles. c Triples. d Quadruples.

Quadruples.

Which of the following statements about nominal GDP and real GDP is correct? a Nominal GDP is a better gauge of economic well-being than real GDP. b Real GDP is a better gauge of economic well-being than nominal GDP. c Real GDP and nominal GDP are equally good measures of economic well-being. d Neither nominal nor real GDP provide a measure of economic well-being.

Real GDP is a better gauge of economic well-being than nominal GDP.

Suppose an economy produces only burgers and bags of fries.in 2010, 4000 burgers are sold at $3 each and 6000 bags of fries at $1.5 each. In 2008, which is the base year, burgers were sold for $2.5 each and bags of fries were sold for $2 each. Then for 2010, a nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 95.45. b nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 104.77. c nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 95.45. d nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 104.77.

nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 95.45.

The GDP deflator is the ratio of: a real GDP to nominal GDP. b real GDP to the inflation rate. c nominal GDP to real GDP. d nominal GDP to the inflation rate.

nominal GDP to real GDP.

Changes in real GDP reflect: a only changes in prices. b only changes in the amounts being produced. c both changes in prices and changes in the amounts being produced. d neither changes in prices nor changes in the amounts being produced.

only changes in the amounts being produced.