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

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

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