Sheet 4 - German University in Cairo Faculty of Management...

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German University in Cairo Faculty of Management Technology Macroeconomics 2011 Prof .Dr.Ihab Nadim Sheet 4 Question 1: MCQ 1. If the price of everything increases, but the production of specific goods and services is unchanged a) Real GDP will remain unchanged b) Nominal GDP will decline c) Real GDP will actually decline d) Real GDP will actually increase 2. Economic growth is better measured in real terms because: a) Output changes from year to year. b) The price level changes from year to another c) The flow of product does not always yield the same figures as the income approach. d) The nominal GDP measures ONLY changes in quantities from a year to another. 3. If potential GDP is greater than actual GDP then: a) exports must be greater than imports b) inflation has increased from the year before c) there is probably some unemployment in the economy d) comparisons should be made in nominal terms Question two: For each of the following, calculate how much the action described has added
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Sheet 4 - German University in Cairo Faculty of Management...

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