Question : 8.3   Real GDP versus Nominal GDP 1) Nominal GDP GDP in : 1388296

 

 

8.3   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 8-11

 

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 8-11. 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 8-11.  Nominal GDP for Tyrovia in 2013 equals

A) $1,140.

B) $880.

C) $690.

D) $560.

 

Table 8-12

 

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 8-12. 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 8-13

 

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 8-13. 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 8-13. 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.