Chapter 11 Measuring a Nation’s Production and Income

February 14, 2018

4)
Based on the information in Scenario 1, nominal GDP in 2011 in this economy was
A)
\$830.
B)
\$1,025.
C)
\$1,090.
D)
\$1,345.

5)
Based on the information in Scenario 1, nominal GDP in 2012 in this economy was
A)
\$830.
B)
\$1,025.
C)
\$1,090.
D)
\$1,345.

6)
Based on the information in Scenario 1, real GDP in 2012 (in 2011 dollars) in
this economy was
A)
\$830.
B)
\$1,025.
C)
\$1,090.
D)
\$1,345.

7)
Based on the information in Scenario 1, nominal GDP grew by about ________%
from 2011 to 2012.
A)
23
B)
31
C)
62
D)
162

8)
Based on the information in Scenario 1, real GDP grew by about ________% from
2011 to 2012.
A)
23
B)
31
C)
62
D)
162

9)
When GDP is measured in “current prices” it is known as the
A)
real GDP.
B)
nominal GDP.
C)
real GNP.
D)
nominal GNP.

10)
When the GDP is measured using “adjustments for price changes” it is
known as the
A)
real GDP.
B)
nominal GDP.
C)
real GNP.
D)
nominal GNP.

11)
A chain-weighted index
A)
is used to understate the rate of inflation.
B)
uses neighboring years’ data to calculate changes in nominal GDP.
C)
calculates changes in prices by using an average of base years from neighboring
years to obtain a more accurate measure of real GDP growth.
D)
is a useful tool for determining which fence to purchase.

12)
What is the chain-weighted price index for GDP in the base year?
A)
0
B)
1
C)
100
D)
The answer depends on the price index for the current year.

13)
When differences between nominal GDP and real GDP result due to price changes
and nothing else is compared, an index is created called the
A)
inflation index.
B)
consumer price index.
C)
GDP deflator.
D)