QUESTION 18 Flowerland\'s nominal GDP rose from $600 to $700 and real GDP rose f
ID: 1161653 • Letter: Q
Question
QUESTION 18
Flowerland's nominal GDP rose from $600 to $700 and real GDP rose from $500 to $530. What will be this country's inflation rate?
a.
16.7%
b.
10.0%
c.
15.0%
d.
-9.1%
QUESTION 25
Nominal GDP is
a.
always equal to real GDP.
b.
always more than real GDP.
c.
equal to real GDP in base year.
d.
always less than real GDP.
QUESTION 12
Which of the following is an example of investment in GDP?
a.
Facebook purchases a computer for use at its corporate headquarters.
b.
You purchase a computer for tweeting and gaming.
c.
You buy shares of stock in Facebook.
d.
You deposit $200 into a bank account.
QUESTION 10
Which of the following falls into the investment component of GDP?
a.
The local hospital buys a new X-ray machine.
b.
A young couple purchases a newly built house.
c.
Ralph purchases a new riding lawn mower for his small business, Ralph & Sons Lawn Care.
d.
All of the above.
a.
16.7%
b.
10.0%
c.
15.0%
d.
-9.1%
Explanation / Answer
18.
inflation = ((700/530)-(600/500))/(600/500) =10%
b. 10%
25.
c.
equal to real GDP in base year.
because price in base year are equal for both realand nominal GDP.
12.
a.
Facebook purchases a computer for use at its corporate headquarters.
10.
d.
All of the above.
c.
equal to real GDP in base year.