macro_tif1_ch07

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Unformatted text preview: and nominal AACSB Coding: GDP Analytic Skills Special Feature: None 17. The GDP deflator is the A) ratio of nominal GDP to real GDP multiplied by 100. B) ratio of real GDP to nominal GDP multiplied by 100. C) difference between real GDP and nominal GDP multiplied by 100 D) difference between nominal GDP and real GDP multiplied by 100 Answer: A Diff: 1 Type: MC Page Ref: To pic : 648/228 G S Conceptual Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Reflective Thinking Special Feature: None 18. Nominal GDP will increase A) if either the price level or the quantity of goods and services produced rises. B) only if the price level rises. C) only if the quantity of final goods and services produced rises. D) only if the price level falls. Answer: A Diff: 3 Type: MC Page Ref: To pic : 648/228 R S Conceptual Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Reflective Thinking Special Feature: None 19. The GDP deflator is a measure of the A) average level of prices of intermediate goods and services in the economy. B) total production of the economy adjusted for inflation. C) average level of prices of final goods and services in the economy. D) total production of the economy unadjusted for inflation. Answer: C Diff: 1 Type: MC Page Ref: To pic : 648/228 G S Factual Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Reflective Thinking Special Feature: None 20. If nominal GDP exceeds real GDP for a specific year, then the GDP deflator must be A) equal to 100. B) less than 0. C) greater than 100. D) less than 100. Answer: C Diff: 2 Type: MC Page Ref: To pic : 648/228 G S Conceptual Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Reflective Thinking Special Feature: None 21. The GDP year 2 is 105, using year 1 as the base year. This means that, on average, the cost of goods and services deflator in is A) 105% higher in year 2 than in year 1. B) 105% higher in year 1 than in year 2. C) 5% higher in year 1 than in year 2. D) 5% higher in year 2 than in year 1. Answer: D Diff: 2 Type: MC Page Ref: To pic : 648/228 R S Analytical Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Analytic Skills Special Feature: None 22. If the GDP deflator is less than 100, then for that year nominal GDP ________ real GDP. A) is less than B) is greater than C) may be greater than or less than D) equals Answer: A Diff: 2 Type: MC Page Ref: To pic : 648/228 G S Conceptual Objective: LO3: Discuss the difference between real GDP and nominal AACSB Coding: GDP Reflective Thinking Special Feature: None 23. Table 711 1998 1999 $8,782 $9,274 $8,509 $8,859 Refer to Table 7-11. Consider the data above on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 1999 equals A) 104.7. B) 105.6. C) 104.1. D) 95.5. Answer: A Diff: 2 Type: MC Page Ref: To pic : 648/228 G S Analytical Objective: LO3: Discuss th...
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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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