Question : 51) When the value of nominal GDP increases from one : 1238425

51) When the value of nominal GDP increases from one year to the next, we know that one or two things must have happened during that time:

A) The nation produced fewer goods and services and/or prices fell for goods and services.

B) Consumption expenditure increased and/or corporate profits increased.

C) Investment increased and/or payments to employees increased.

D) The nation produced more goods and services and/or prices rose for goods and services.

E) the value of real GDP must have increased and/or the price level must have decreased.

52) If nominal GDP increases from one year to the next, then

A) production must have increased.

B) production could have increased, decreased, or stayed the same.

C) prices must have increased.

D) prices and production must both have increased.

E) prices and production must both have decreased.

53) Which of the following statement is correct?

A) If nominal GDP increases, then real GDP must increase.

B) If nominal GDP decreases, then real GDP must increase.

C) If real GDP decreases, then nominal GDP must decrease.

D) Nominal and real GDP can change either in the same direction or the opposite direction.

E) If nominal GDP does not change, then real GDP cannot change.

54) If nominal GDP increases this year, then real GDP

A) must decrease.

B) must increase.

C) must not change.

D) could increase, decrease, or not change.

E) could either increase or not change but cannot decrease.

55) Bobby was researching the economic growth of a country between 2006 and 2011. Using 2006 as the base year, he calculated a twelve percent increase for real GDP and a ten percent increase for nominal GDP. His results indicate that

A) he made an error when calculating nominal GDP.

B) the quantity of goods and services produced decreased over the period.

C) the quantity of goods and services produced increased and prices decreased over the period.

D) the quantity of goods and services produced and prices both decreased over the period.

E) the quantity of goods and services produced did not change and prices decreased over the period.

56) If real GDP is greater than nominal GDP for a particular year, then

A) production must have fallen between the current year and the base year.

B) production must have increased between the current year and the base year.

C) prices must have fallen between the current year and the base year.

D) prices must have risen between the current year and the base year.

E) prices must have fallen between the current year and the immediate past year.

57) During last year, a country produced 20,000 pizzas and 10,000 hamburgers and nothing else. The pizzas sold for $10.00 each and the hamburgers for $3.00 each. Nominal GDP was

A) $230,000.

B) $70,000.

C) $460,000.

D) $390,000.

E) $360,000.

58) The base year is 2010. A country only produces MP3 players. The price of an MP3 player in 2008 was $50. The price of an MP3 player was $30 in 2010. The quantity of MP3 players produced in 2008 was 10,000 units and in 2010 was 20,000 units. Nominal GDP in 2010 equals

A) $1,000,000.

B) $500,000.

C) $600,000.

D) $200,000.

E) an amount that cannot be determined without information about real GDP in 2010.

59) The base year is 2011. A country only produces Blu-ray players. The price of a Blu-ray player in 2011 was $100. The price of a Blu-ray player was $90 in 2012. The quantity of Blu-ray players produced in 2011 was 10,000 units and in 2012 was 10,500 units. Nominal GDP in 2012 equals

A) $900,000.

B) $945,000.

C) $1,000,000.

D) $1,050,000.

E) an amount that cannot be determined without information about nominal GDP in 2008.

60) The base year is 2012. A country only produces Blu-ray players. The price of a Blu-ray player in 2012 was $100. The price of a Blu-ray player was $90 in 2013. The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units. Real GDP in 2012 equals

A) $900,000.

B) $945,000.

C) $1,000,000.

D) $1,050,000.

E) an amount that cannot be determined without information about real GDP in 2007 .