Question : 101.Which approach to calculating GDP especially useful in clarifying the : 1379059

101.Which approach to calculating GDP is especially useful in clarifying the resale of existing goods?

A. The expenditure approach

B. The income approach

C. The value-added approach

D. Any of these measurements will allow that kind of clarification equally well.

102.U.S. GDP increased from $12.5 trillion in 2005 to $14 trillion in 2009. This means that:

A. people in the U.S. produced more goods and services in 2009 than in 2005.

B. the prices of all goods and services were higher in 2009 than in 2005.

C. Either of these could be true.

D. Both of these must be true.

103.Real GDP:

A. is calculated based on goods and services valued at constant prices.

B. is calculated based on goods and services valued at current prices (current at the time of production).

C. is useful in clearly seeing changes in prices over time using GDP.

D. None of these statements is true.

104.Real GDP:

A. is calculated based on goods and services valued at constant prices.

B. is useful in discerning if the changes in GDP are due to increased production.

C. uses a base year’s prices for all years’ calculation of GDP.

D. All of these statements are true.

105. 

Assume the table has recorded the total output and prices of the only two goods produced in the country of Mondolia. Looking at the changes in real GDP and nominal GDP from 2000 to 2001, we can conclude that:

A. because real and nominal GDP increased at the same rate, there was no change in prices, only output.

B. because nominal GDP rose more than real GDP, both prices and output must have increased.

C. because GDP rose more than nominal GDP, output must have increased more than prices.

D. because and nominal GDP increased at the same rate, there was no change in output, only prices.

106. 

Assume the table has recorded the total output and prices of the only two goods produced in the country of Mondolia. Looking at the figures in the table, the GDP deflator in 2003 was:

A. 135.

B. 74.

C. 109.

D. 105.

107. 

Assume the table has recorded the total output and prices of the only two goods produced in the country of Mondolia. Looking at the changes in real GDP and nominal GDP from 2001 to 2002, we can conclude:

A. output and prices increased.

B. only output increased.

C. only prices increased.

D. output increased, but prices decreased.

108.In the base year:

A. nominal and real GDP are equal by definition.

B. nominal GDP is always larger than real GDP because prices are held constant.

C. real GDP is always larger than nominal GDP because prices are held constant.

D. real GDP will only be larger than nominal GDP if prices increased in the base year.

109.The base year refers to the year whose:

A. prices are used to calculate real GDP for all years.

B. levels of output are used to calculate the real GDP for all years.

C. prices are used to calculate nominal GDP for all years.

D. levels of output are used to calculate the nominal GDP for all years.

110.If the nominal GDP were to increase, but the real GDP were to increase by less from one year to the next, we could conclude:

A. prices went up, but output stayed the same.

B. prices stayed the same, but output went up.

C. both prices and output went up.

D. both prices and output stayed the same.