quiz 3
If nominal GDP is $10 trillion and real GDP is $8 trillion, then the GDP deflator is
125, and this indicates that the price level has increased by 25 percent since the base year.
If in some year nominal GDP was $10 trillion and real GDP was $4 trillion, what was the GDP deflator?
250.
The GDP deflator for years subsequent to the base year measures the change in
nominal GDP from the base year that cannot be attributable to a change in real GDP
Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit. In 2009, the base year, the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit. For 2010,
nominal GDP is $1800, real GDP is $2000, and the GDP deflator is 90.
Changes in real GDP reflect
only changes in the amounts being produced
The inflation rate is the
percentage change in the price level from one period to another.
Which of the following is included in the consumption component of U.S. GDP?
purchases of natural gas by U.S. households
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 and the price level both fell
Which of the following is included in government purchases?
the services of a U.S. government attorney valued at the cost of her salary
Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2008, Quality Motors produced $25 million worth of automobiles and sold $12 million in the U.S. and $13 million in Mexico. In addition, it sold $2 million from the previous year's inventory in the U.S. The transactions just described contribute how much to U.S. GDP for 2008?
$25 million
Beth, an American citizen, travels to Italy on vacation and buys an espresso machine to bring home. Her purchase increases
Italy's GDP.
Which of the following values would be included in U.S. GDP for 2015?
All of the above would be included in U.S. GDP for 2015.
which of the following is included in the investment component of GDP
Households' purchases of newly constructed homes, net additions to firms inventories, and firms' purchases of capital equipment.
Martin, a U.S. citizen, travels to Mexico and buys a newly manufactured motorcycle made there. His purchase is included in
Mexican GDP, but it is not included in U.S. GDP.
Leo works in a Mercedes Benz factory in Alabama. He is then transferred to Mercedes's plant in South Africa. When does the value of Leo's work for Mercedes contribute to U.S. GDP?
The value of his work contributes to U.S. GDP when he works in the Alabama plant.
Changes in Nominal GDP reflect
both changes in prices and changes in the amounts being produced
Suppose an economy produces only burgers and bags of fries. In 2010, 4000 burgers are sold at $3 each and 6000 bags of fries are sold at $1.50 each. In 2008, the base year, burgers sold for $2.50 each and bags of fries sold for $2 each.
c. nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 95.45.
A U.S. citizen buys a tea kettle manufactured in China by a company that is owned and operated by U.S citizens. In which of the following components of U.S. GDP is this transaction accounted for?
consumption and imports