Econ Test
If in some year real GDP was $25 billion and the GDP deflator was 68, what was the nominal GDP?
$17 billion
If nominal GDP is $8 trillion and real GDP is $10 trillion, then the GDP deflator is...
80, and this indicates that the price level has decreased by 20 percent since the base year
Net exports equal...
Y - (C+I+G)
If nominal GDP doubles and the GDP deflator doubles, then the real GDP...
remains constant
Two alternative measures of the overall level of prices are...
the GDP deflator and the consumer price index
If a U.S. citizen buys a dress made in Nepal by a Nepalese firm then...
U.S. consumption increases, U.S. net exports decrease, and the U.S. GDP is unaffected
In the base year, the GDP deflator is always...
100
If real GDP is 5,100 and the nominal GDP is 4,900 then the GDP deflator is...
96.1 so prices are lower than in the base year
Which of the following always uses prices and quantities from the same period?
Nominal GDP but not real GDP
What is the correct formula for the GDP deflator?
Nominal GDP/Real GDP X 100
Which of the following is always measured in prices from a base-year?
Real GDP but not nominal GDP
When an American household purchases a bottle of Italian wine for $100...
U.S. consumption increases by $100, U.S. net exports decrease by $100, and the U.S. GDP does not change
The CPI and the GDP deflator...
generally move together
Which of the following is a determinant of productivity?
human capital per worker, physical capital per worker, natural resources per worker
For the economy as a whole...
income met equal expenditure
Which of the following would increase productivity?
increase in physical capital stock per worker, increase in human capital per worker, an increase in natural resources per worker
The CPI differs from the GDP deflator in that...
increases in the prices of domestically produced goods that are sold to the U.S. government show up in the GDP deflator but not in the CPI
The CPI differs from the GDP deflator in that...
increases in the prices of foreign produced goods that are sold to U.S. consumers show up in the CPI but not in the GDP deflator
If net exports is a negative number for a particular year, then...
the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year
