Homework 8

Refer to TABLE 1. In 2011, this country's real GDP was:

$760

Refer to TABLE 1. In 2012, this country's real GDP was:

$930

In the base year, the GDP deflator is always equal to:

100

Refer to TABLE 1. In 2013, this country's GDP deflator was:

100

In 2012 the nominal GDP was $18 billion and the GDP deflator was 120, what was real GDP?

$15 Billion

Refer to TABLE 1. In 2010, this country's nominal GDP was:

$260

If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP?

$40 billion.

Refer to TABLE 1. In 2011, this country's nominal GDP was:

$440

Refer to TABLE 1. In 2010, this country's real GDP was:

$620

Refer to TABLE 1. In 2012, this country's GDP deflator was:

74.2

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.

If in some year nominal GDP was $28 trillion and real GDP was $32 trillion, what was the GDP deflator?

87.5

Refer to TABLE 1. In 2013, this country's real GDP was:

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?

Nominal GDP but not real GDP.

Which of the following is correct?

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,

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

The GDP deflator is the ratio of

Nominal GDP to real GDP multiplied by 100.

If real GDP doubles and the GDP deflator doubles, then nominal GDP

Quadruples.

Which of the following statements about nominal GDP and real GDP is correct?

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,

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

The GDP deflator is the ratio of:

nominal GDP to real GDP.

Changes in real GDP reflect:

only changes in the amounts being produced.

Nominal GDP will definitely increase when

prices increase and output increases.

Refer to TABLE 1. This country's inflation rate from 2012 to 2013 was:

34.8%