Chapter 6 Econ 2110

Assume the real GDP of Brazil in 2020 was R 6 billion (Real). If the exchange rate was 1 Real = $0.25, calculate the real GDP of Brazil in US dollars in 2020. $24 billion $2.4 billion $1.5 billion $4 billion

$1.5 billion

Based on the following data, GDP would equal ___ while Net National Product equals ___ $110 billion; $114 billion $130 billion; $139 billion $110 billion; $101 billion $130 billion; $121 billion

$110 billion; $114 billion

Assume that in the year 2010, the US Nominal GDP was $15 trillion, while the GDP deflator was 200. Calculate the US Real GDP for 2010. $30 trillion $300 trillion $0.75 trillion

$7.5 trillion

The GDP deflator is... The difference between Nominal and Real GDP. A price index used to remove the distorting effect of inflation from Nominal GDP. The inflation rate used to adjust Nominal GDP. A price index used to remove the distorting effect of inflation from Real GDP.

A price index used to remove the distorting effect of inflation from Nominal GDP.

Which of the following equation represents GDP measured by the components of demand Durable Goods + Nondurable goods + Services + Structures + Change in inventories = GDP Consumption + Government Spending + Trade Balance + Investment = GDP Consumption + Government Spending + Imports + Investment = GDP Durable Goods + Services + Government Spending + Trade Balance = GDP

Consumption + Government Spending + Trade Balance + Investment = GDP

Based on the GDP information in the table below for 2 countries: Countries A and B have improved their standard of living in 2021, but A's living standards have lowered compared to B. Countries A and B have improved their standard of living in 2021 but A has higher standards of living than B. Country A has improved their standard of living in 2021 more than country B. Country B has a higher GDP in 2021 than country A.

Countries A and B have improved their standard of living in 2021 but A has higher standards of living than B.

Which of the following statements best describe how economists calculate GDP? Economists at the Congressional Budget Office calculate GDP for a given year by adjusting the previous year's GDP with inflation. Economists at the Census bureau collect data from surveys sent to consumers, private firms and government agencies and add them up on a yearly basis. Economists at the Bureau of Labor Statistics collect data from surveys sent to consumers, private firms and government agencies and add them up every 3 months. Economists at the Bureau of Economic Analysis pull together data on sales, imports, exports, government purchase and investments from various government sources every 3 months.

Economists at the Bureau of Economic Analysis pull together data on sales, imports, exports, government purchase and investments from various government sources every 3 months.

In 2010, the country of Utopia experienced the highest contraction of their economy at 10% in the previous 20 years before a new expansion phase. In 2010, the economy of Utopia... Had reached a peak. Was in an expansion phase. Had reached a trough. Was in a recovery phase.

Had reached a trough.

Which statement best describes the difference between Nominal and Real GDP? Nominal GDP is Real GDP that has been adjusted to remove the distorting effects of inflation. Nominal GDP is calculated using current market prices, while Real GDP is calculated using the prices of the previous year. Real GDP is calculated using current market prices, while Nominal GDP is calculated using the average prices of the last 5 years. Real GDP is Nominal GDP which has been adjusted to remove the distorting effects of inflation.

Real GDP is Nominal GDP which has been adjusted to remove the distorting effects of inflation.

Select the statement below which highlights the role of real GDP: "The growth in real GDP has been much lower than expected over the last few years and... The country is currently in a mild but lasting recession. The government needs to adjust how GDP is being measured Unemployment has been rising as a result creating hardship for many in the country. Inflation is making the growth numbers more optimistic.

Unemployment has been rising as a result creating hardship for many in the country.