Question :
19.3 Real GDP versus Nominal GDP
1) Nominal GDP GDP in : 1388063
19.3 Real GDP versus Nominal GDP
1) Nominal GDP is GDP in a given year
A) adjusted for inflation.
B) adjusted for anticipated inflation.
C) valued in the prices of that year.
D) valued in the prices of the base year.
2) Real GDP is GDP in a given year
A) adjusted only for anticipated inflation.
B) adjusted only for unanticipated inflation.
C) valued in the prices of that year.
D) valued in the prices of the base year.
Table 19-11
Year
Guns Produced
Price of Guns
Butter Produced
Price of Butter
2005
80
$5
40
$4
2013
90
6
60
10
Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
3) Refer to Table 19-11. Real GDP for Tyrovia for 2013 using 2005 as the base year equals
A) $1,140.
B) $880.
C) $690.
D) $560.
4) Refer to Table 19-11. Nominal GDP for Tyrovia in 2013 equals
A) $1,140.
B) $880.
C) $690.
D) $560.
Table 19-12
Year
Nominal GDP
Real GDP
2008
$7,400
$7,537
2009
7,813
7,813
2010
8,301
8,165
2011
8,760
8,516
5) Refer to Table 19-12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is
A) 2008.
B) 2009.
C) 2010.
D) 2011.
Table 19-13
Year
Oranges Produced
Price of Oranges
Shirts Produced
Price of Shirts
2009
1,800
$0.90
110
$30.00
2011
2,000
1.00
110
35.00
Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts.
6) Refer to Table 19-13. Real GDP for Vicuna for 2009 using 2011 as the base year equals
A) $4,620.
B) $5,100.
C) $5,650.
D) $5,850.
7) Refer to Table 19-13. Nominal GDP for Vicuna for 2009 equals
A) $4,920.
B) $5,100.
C) $5,300.
D) $5,850.
8) If the quantity of goods and services produced in the economy decreases,
A) it may be possible for real GDP to increase.
B) real GDP would certainly increase.
C) it may be possible for nominal GDP to increase.
D) nominal GDP would certainly increase.
9) Suppose that nominal GDP in 2013 was less than real GDP in 2013. Given this information, we know for certain that
A) the price level in 2013 was greater than the price level in the base year.
B) the price level in 2013 was less than the price level in the base year.
C) real GDP in 2013 was less than real GDP in the base year.
D) real GDP in 2013 was greater than real GDP in the base year.
10) Which of the following could cause nominal GDP to decrease, but real GDP to increase?
A) The price level rises and the quantity of final goods and services produced rises.
B) The price level falls and the quantity of final goods and services produced rises.
C) The price level rises and the quantity of final goods and services produced falls.
D) The price level falls and the quantity of final goods and services produced falls.
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