Homework 2 part 2 - 17 Lets consider some data on nominal...

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17. Let’s consider some data on nominal GDP and GDP price deflator from the Federal Reserve Database: Nominal GDP (billions of dollars) GDP price deflator April 4, 2013 $16667.9 106.294 Using the data in the table above, real GDP is equal to $__________. A) 1771697.76 B) 15680.94 C) 156.81 D) 15.68 Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): B 18. During the 1973-1975 recession, GDP growth was about -3% and the percent change in prices was about 13%. This combination of GDP growth and percent change in prices is referred to as: Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): C 19. Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness?
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Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): B 20. Use the table below to answer questions 20-23 The table below shows the ‘hypothetical’ basket(s) of consumption goods for a 'typical' Penn State college student for 2012 and 2013. 2012 Basket for ‘typical PSU college student’ 2013 Basket for ‘typical PSU college student’ Item Price Quantity Item Price Quantity Textbooks $80 6 Textbooks $90 6 Rent $700 1 Rent $800 1 PSU sporting events $15 6 PSU sporting events $20 3 Dinners in State College $25 6 Dinners in State College $25 8 Assume 2012 is the base year. The rate of inflation between 2012 and 2013 is ____%. NOTE: calculate the rate of inflation using price indexes.
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