Question 1

Nominal GDP will increase

Accepted Answer

A)  only if the price level rises. 
B)  only if the price level falls. 
C)  only if the quantity of final goods and services produced rises. 
D)  if either the price level or the quantity of goods and services produced rises. 
A)  only if the price level rises. 
B)  only if the price level falls. 
C)  only if the quantity of final goods and services produced rises. 
D)  if either the price level or the quantity of goods and services produced rises.

Question 2

Table 19-18
   A very simple economy produces three goods: cameras, legal services, and books. The quantities produced and their corresponding prices for 2008 and 2013 are shown in the table above.
-If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years?

Accepted Answer

A)  270% 
B)  50% 
C)  5% 
D)  2.7% 
A)  270% 
B)  50% 
C)  5% 
D)  2.7%

Question 3

If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is

Accepted Answer

A)  12.5. 
B)  80. 
C)  125. 
D)  800. 
A)  12.5. 
B)  80. 
C)  125. 
D)  800.

Question 4

The Bureau of Economic Analysis divides its statistics on GDP into four major categories. List the categories of expenditures and define each.

Accepted Answer

The largest category of expenditures is

Question 5

Use the formula for the GDP deflator to explain how it is affected by an increase in prices in the economy. If the value of the deflator equals 100, what does that tell you about that year with respect to the base year?

Accepted Answer

The formula for the GDP deflator is give

Question 6

Table 19-13
   Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts.
-Refer to Table 19-13. Real GDP for Vicuna for 2009 using 2011 as the base year equals

Accepted Answer

A)  $4,620. 
B)  $5,100. 
C)  $5,650. 
D)  $5,850. 
A)  $4,620. 
B)  $5,100. 
C)  $5,650. 
D)  $5,850.

Nominal GDP will increase

Table 19-18 A very simple economy produces three goods: cameras, legal services, and books. The quantities produced and their corresponding prices for 2008 and 2013 are shown in the table above. -If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years?

If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is

The Bureau of Economic Analysis divides its statistics on GDP into four major categories. List the categories of expenditures and define each.

Use the formula for the GDP deflator to explain how it is affected by an increase in prices in the economy. If the value of the deflator equals 100, what does that tell you about that year with respect to the base year?

Table 19-13 Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts. -Refer to Table 19-13. Real GDP for Vicuna for 2009 using 2011 as the base year equals

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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Exam 19: GDP: Measuring Total Production and Income

Nominal GDP will increase

Table 19-18 A very simple economy produces three goods: cameras, legal services, and books. The quantities produced and their corresponding prices for 2008 and 2013 are shown in the table above. -If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years?

If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is

The Bureau of Economic Analysis divides its statistics on GDP into four major categories. List the categories of expenditures and define each.

Use the formula for the GDP deflator to explain how it is affected by an increase in prices in the economy. If the value of the deflator equals 100, what does that tell you about that year with respect to the base year?

Table 19-13 Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts. -Refer to Table 19-13. Real GDP for Vicuna for 2009 using 2011 as the base year equals

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters