# Production takes place outside the country gdp gnp

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production takes place outside the country. GDP – GNP = net factor payments.
Diff: 2 Type: SA Page Ref: 44-45 Topic: What Does “GDP” Mean? Objective: LO1: Explain how economists use gross domestic product (GDP) to measure total production and total income. Special Feature: None – Recurring question
AACSB: Reflective Thinking Skills Learning Outcome: Macro-3 2.2 Real GDP, Nominal GDP, and the GDP Deflator 1) Economists measure the price level with a(n) ________, which is a measure of the average of the prices of goods and services in one year relative to a base year.
Diff: 1 Type: MC Page Ref: 52 Topic: Price Indices, the GDP Deflator, and the Inflation Rate Objective: LO2: Discuss the difference between real GDP and nominal GDP. Special Feature: None – Recurring question AACSB: Reflective Thinking Skills Learning Outcome: Macro-3 2) If Statistics Canada uses a base year of 2007 for prices, real GDP will be ________ nominal GDP in 2007.
Diff: 1 Type: MC Page Ref: 52 Topic: Real GDP, Nominal GDP, and the GDP Deflator Objective: LO2: Discuss the difference between real GDP and nominal GDP. Special Feature: None – Recurring question
AACSB: Reflective Thinking Skills Learning Outcome: Macro-3 3) Which of the following does not indicate a change in price levels?
Diff: 1 Type: MC Page Ref: 52 Topic: Price Indices, the GDP Deflator, and the Inflation Rate Objective: LO2: Discuss the difference between real GDP and nominal GDP. Special Feature: None – Recurring question AACSB: Reflective Thinking Skills Learning Outcome: Macro-3 4) Nominal GDP is the value of goods and services 1. A) adjusted for inflation. 2. B) adjusted for anticipated inflation. 3. C) using base-year prices. 4. D) using current-year prices. Answer: D
Diff: 1 Type: MC Page Ref: 50 Topic: Real GDP, Nominal GDP, and the GDP Deflator Objective: LO2: Discuss the difference between real GDP and nominal GDP. Special Feature: None – Recurring question AACSB: Reflective Thinking Skills Learning Outcome: Macro-3
5) Real GDP is the value of goods and services
Diff: 1 Type: MC Page Ref: 50 Topic: Real GDP, Nominal GDP, and the GDP Deflator Objective: LO2: Discuss the difference between real GDP and nominal GDP. Special Feature: None – Recurring question AACSB: Reflective Thinking Skills Learning Outcome: Macro-3