Econ Review - Nominal and Real GDP and Price Levels(D 1...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Nominal and Real GDP and Price Levels (D) 1. Which of the following is not a measure of price levels? A. the CPI (consumer price index) B. the PPI (producer price index) C. the GDP Deflator D. All of the above are price levels. E. None of the above is a price level. (E) 2. If nominal GDP increased in an economy, then which of the following must have happened in this economy? A. Price levels increased. B. More goods and services were produced. C. Both price levels and real GDP increased. D. Consumption increased. E. None of the above (C) 3. If nominal GDP equals $100,000 and the GDP deflator equals 200, then real GDP equals A. $20,000,000. B. $500. C. $50,000. D. $200,000. E. None of the above. (D) 4. Suppose that in Macroland, the price level in the year 2004 was 300. In 2005, the price level increased to 315. Based on this information, the rate of inflation in Macroland between 2004 and 2005 was _____ per cent. A. approximately -4.76 B. approximately +4.76 C. equal to -5 D. equal to +5 E. Not enough information is given to calculate inflation. (B) 5. If the prices of all goods and services in the U.S. would increase , the buying power of the U.S. dollar would A. increase B. decrease C. stay the same D. either increase or stay the same E. More information is needed to answer the question. (A)6. If an economy produced fewer goods and services in the year 2007 than it produced in the year 2006, then we know for certain that A. real GDP in that economy decreased in 2007 compared to real GDP in 2006.
Image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern