macro_tif1_ch07

# B nominalgdp wouldcertainlyincrease c itmaybe

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Unformatted text preview: To pic : 646/226 R S Analytical Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Analytic Skills Special Feature: Solved Problem: Calculating Real GDP 4. Refer to Table 7-8. Nominal GDP for this fictional economy in 2006 equals A) \$880. B) \$690. C) \$1,140. D) \$560. Answer: C Diff: 2 Type: MC Page Ref: To pic : 646/226 R S Analytical Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Analytic Skills Special Feature: None 5. Table 7-9 1997 1998 \$8,301 \$8,760 \$8,165 \$8,516 Refer to Table 7-9. Consider the data above on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is A) 1996. B) 1998. C) 1997. D) 1995. Answer: A Diff: 2 Type: MC Page Ref: To pic : 646-7/226-7 R S Conceptual Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Reflective Thinking Special Feature: None Table 7-10 Year 1998 2000 Oranges Produced 1,800 2,000 Price of Oranges Price of Shirts (Dollars) Shirts Produced (Dollars) \$0.90 110 \$30 \$1.00 110 \$35 Consider the data above for a fictional economy that produces only two products: oranges and shirts. 6. Refer to Table 7-10. Real GDP for this fictional economy for 1998 using 2000 as the base year equals A) \$5,300. B) \$4,620. C) \$5,100. D) \$5,850. Answer: A Diff: 2 Type: MC Page Ref: To pic : 646/226 R S Analytical Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Analytic Skills Special Feature: None 7. Refer to Table 7-10. Nominal GDP for this fictional economy for 1998 equals A) \$5,850. B) \$5,300. C) \$4,620. D) \$5,100. Answer: C Diff: 2 Type: MC Page Ref: To pic : 646/226 R S Analytical Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Analytic Skills Special Feature: None 8. If the quantity of goods and services produced in the economy decreases A) it may be possible for real GDP to increase. B) nominal GDP would certainly increase. C) it may be possible for nominal GDP to increase. D) real GDP would certainly increase. Answer: C Diff: 2 Type: MC Page Ref: To pic : 646-7/226-7 R S Conceptual Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Reflective Thinking Special Feature: None 9. Suppose nominal GDP in 2005 was less than real GDP in 2005. Given this information, we know for certain that that A) real GDP in 2005 was less than real GDP in the base year. B) real GDP in 2005 was greater than real GDP in the base year. C) the price level in 2005 was less than the price level in the base year. D) the price level in 2005 was greater than the price level in the base year. Answer: C Diff: 2 Type: MC Page Ref: To pic : 646-7/226-7 R S Conceptual Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Reflective Thinking Special Feature: None 10. Which of the following could cause nominal GDP to decrease, but real GDP to increase? A) The price level rises and the quantity of...
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## This note was uploaded on 09/21/2012 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.

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