Quiz 3

if 2002 is the base year then the inflatation rate in 2005 equals

CPI in 2005-CPI in 2002 DIVIDED BY CPI in 2002 TIMES 100

countries that have lower levels of real GDP person than the US

in some cases have growth rates that are higher than that of the US and in other cases lower than that of the US.

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009. It also reported a GDP deflator of 100 in 2010 and 105 in 2009. Between 2009 and 2010.

real output fell and the price level rose

which of the following is correct

the CPI is better then the GDP deflator at reflecting the goods and services bought by consumers

babe ruth's 1931 salary was $80,000. government statistics show a consumer price index of 15.2 for 1931 and 214.5 for 2009. ruth;s 1931 salary was equivalent to a 2009 salary of about

$1,128,947

suppose that a basket of goods and services has been selected to calculate the CPI and 2002 has been selected as the base year. in 2002 the baskets cost was $50, in 2004 the baskets cost was $52, and in 2006, the basket;s cost was $57.25. The value of the CPI in 2006 was

114.5

many things that society values, such as good health, high quality education, enjoyable recreation opportunities and desirable moral attributes of the population are not measured as part of GDP

GDP is not a useful measure of society's welfare

GDP is equal to

all the above

Which of the following items is included in U.S. GDP?

all the above are included

Changes in nominal GDP reflect

both changes in prices and changes in the amounts being produced

the introduction of a new good

decreases the cost of maintaing the same level of economic well being

for an economy as a whole, income must equal expenditure because

every dollar of spending by some buyer is a dollar of income for some seller