chapter_7test

chapter_7test - 1 Nominal GDP differs from real GDP because...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Nominal GDP differs from real GDP because: A) Real GDP is adjusted for changes in the price level Feedback: correct B) Nominal GDP is based on constant prices C) Nominal GDP is adjusted for changes in the price level D) Real GDP is based on current prices Points Earned: 5.0/5.0 Correct Answer(s): A 2. Assume an economy that is producing only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the next question(s) on the basis of these data. Refer to the above data. The nominal GDP for year 4 is: A) $55. B) $40. C) $35. D) $49. Feedback: correct Points Earned: 5.0/5.0 Correct Answer(s): D 3. Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2 except that business inventories fell by $10 billion. GDP in year 2 is: A) $200 billion. B) $180 billion. C) $190 billion. Feedback:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
D) $210 billion. Points Earned: 5.0/5.0 Correct Answer(s): C 4. Which of the following transactions would be included in GDP? A) Mary buys a used book for $5 at a garage sale. B) Nick buys $5000 worth of stock in Microsoft. C) Olivia receives a tax refund of $500. D) Peter buys a newly constructed house. Feedback: correct Points Earned: 5.0/5.0 Correct Answer(s): D 5. Assume an economy that is producing only one product. Output and price data for a three-year period are as follows. Answer the next question(s) on the basis of these data. Refer to the above data. If year 2 is chosen for the base year, in year 3 nominal GDP and real GDP, respectively, are: A) $30 and $5. B) $180 and $30.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 8

chapter_7test - 1 Nominal GDP differs from real GDP because...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online