economics sss
Suppose GDP was 10 trillion in 2000 (in 2000 dollars) and 15 trillion in 2010 (in 2010 dollars). If the country experienced 20% inflation over those ten years, what was the 2000 GDP expressed in 2010 dollars?
$12 trillion
If the nominal GDP is $3 trillion and the GDP deflator is 120, then what is the real GDP?
$2.5 trillion
Using 2000 as a base year, suppose the 2010 nominal GDP is 18 trillion and the 2010 real GDP is 15 trillion. What is the GDP deflator for the year 2000 to 2010?
120
National income provides an indication of
the change in market value sum of goods and services economic activity
Suppose GDP was 10 trillion in 2000 (in 2000 dollars) and 15 trillion in 2010 (in 2010 dollars). If the country experienced 20% inflation over those ten years, what was percent increase in real GDP?
25%
GDP is a useful metric in evaluating
A country's growth and comparative growth trajectories across countries.
If the Consumer Price Index in a country was 186.5 at the end of last year and 179.8 at the end of this year, the country experienced which of the following?
A deflation rate of 3.4 percent
Which of the following best describes a cost-push inflation scenario?
Global wheat supplies are destroyed, and wheat is a necessary input for toaster pastries
Disposable income can be defined as:
Income left after deducting taxes and government fees.
Which of the following is an advantage of the CPI over the GDP deflator?
It is a more accurate reflection of the changes in the cost of living
Suppose inflation averages 2% over the course of five years. How will real GDP compare to nominal GDP?
Real GDP will be lower than nominal GDP
The distinction between real GDP and nominal GDP is important to determine which of the following?
The change in real production
What is a consequence of a rise in the CPI?
Wages will rise for those covered by collective bargaining agreements Social security payments will rise Income tax brackets will shift upwards
GDP per capita is most useful for
comparing the average wealth of one country to another.
Which of the following is an advantage of the GDP deflator over the CPI?
it does not suffer from substitution bias
