macro95ex2

# Currently the us national income and product accounts

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41. Currently, the U.S. national income and product accounts (NIPA) use what type of price index to calculate real GDP? (a) Fixed-weight (b) Variable-weight (c) Chain-weight (d) Heavy-weight Answer: C Level of difficulty: 1 Section: 2.4 42. If nominal GDP for 2003 is \$6400 billion and real GDP for 2004 is \$6720 billion (in 2003 dollars), then the growth rate of real GDP is 43. If the price index was 100 in 1990 and 120 in 2000, and nominal GDP was \$360 billion in 1990 and \$480 billion in 2000, then the value of 2000 GDP in terms of 1990 dollars would be

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24 Abel/Bernanke • Macroeconomics, Fifth Edition 44. Nominal GDP in 1970 was \$1,035.6 billion, and in 1980 it was \$2,784.2 billion. The GDP price index was 30.6 for 1970 and 60.4 for 1980, where 1992 was the base year. Calculate the percent change in real GDP in the decade from 1970 to 1980. Round off to the nearest percentage point. 45. Nominal personal consumption expenditures in the United States were \$1760.4 billion in 1980 and rose to \$3839.3 billion in 1990. The price index for personal consumption expenditures was 58.5 for 1980 and 92.9 for 1990, where 1992 was the base year. Calculate the percent change in real personal consumption expenditures (rounded to the nearest percentage point) in the decade. (a) 37% (b) 59% (c) 118% (d) 137% Answer: A Level of difficulty: 2 Section: 2.4 46. A chain-weight price index 47. A disadvantage of chain-weighting is that
Chapter 2 The Measurement and Structure of the National Economy 25 48. The U.S. inflation rate ___________ in the 1960s and 1970s, ___________ in the 1980s, and ___________ in the 1990s.

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• Spring '11
• carlitos
• Inflation, gross domestic product, Fifth Edition, Difficulty

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