I1. If the prices of all goods and services produced in the economy rose while t
ID: 1112193 • Letter: I
Question
I1. If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise? a both real GDP and nominal GDP c nominal GDP but not real GDP b. real GDP but not nominal GDP d neither nominal GDP nor real GDP year, iPhones sold at $400 each and bananas sold at $2 per 12. pounds of bananas are sold at 53 per pound. In 2009, the base pound. For 2010, a nominal GDP is $315,000, real GDP is $410,000, and the GDP deflator is 76.83. b nominal GDP is $410,000, real GDP is $315,000, and the GDP deflator is 130.16 c nominal GDP is $315,000, real GDP is $410,000, and the GDP deflator is 130.16. d nominal GDP is $410,000, real GDP is $315,000, and the GDP deflator is 76.83 3. When studying changes in the economy over time, economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services. In other words, cconomists want to study a nominal GDP b. real GDP c. the GDP deflator d. GNP 14 Nominal GDP will definitely increase when a prices increase and output increases c prices decrease and output increases b prices increase and output decreases d. All of the above are correct 15, Real GDP will increase only when prices mcrease. C,when prices increase or output increases· b, only when output increases d.All ofthe above are correct. 16. Which of the following is always measured in prices from a base-year? both nominal and real GDP c rcal but not nominal GDP b. nominal but not real GDP d neither nominal nor real GDP 17. Which a both nominal and real GDP rcal GDP but not nominal GDP. of the following always uses prices and quantities from the same period? b nominal GDP but not real GDP d, neither nominal or real GDP 19. Which of the following is correct? a Nominal GDP is always less than real GDP b. Nominal GDP is always greater than equals real GDP in the base year. d Nominal GDP real GDP in all years but the base growth in the econommy, they measure that growth as the a absolute change in nominal GDP from b percentage change c. absolate change one period to in nominal GDP from one period to another in real GDP frons one period to another. ge change in real GDP from one period to another 20 Suppose an economy produces cely chese and fish. In 2010,20 nits of cheese are sold at $5 each and 8 units of fish are sold at 550 each. In 2009, the base year, the price of For 2010, a nominal GOP is $500, real GDP is $800, and the GDP deflator is 62.5 b nominal GDP is $500, rcal GDP is $800, and the GDP deflator is 160. c nominal GOP is $800, real GDP is $500, and the GDP deflator is 62 5 d nominal GDP is $800, rcal GDP is $500, and the GDP deflator is 160. 21. In the base year, the GDP deflator is always d 100Explanation / Answer
Answer:
11.
c.Nominal GDP but not real GDP.
if the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same nominal GDP will rise.
12.
a.nominal GDP is $315,000,real GDP is $410,000,and the GDP deflator is 76.83
13.
B.real GDP.
14.
A.Price increase and output increases.
when there is an increase in price and output there will be definite increase in nominal GDP too.
15.
A.only when output increases.
Real GDP will increase only if the output increases.
16.
c.real but not nominal GDP.
Real GDP is always measured in prices from a base-year.
17.
b.Nominal GDP but not real GDP.
Nominal GDP is always measured in prices and quantities from the same period.