Question :
12.3 Real GDP versus Nominal GDP
1) Nominal GDP GDP in : 1266881
12.3 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 12-8
Year
Guns Produced
Price of Guns
Butter Produced
Price of Butter
2005
80
$5
40
$4
2011
90
6
60
10
Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
3) Refer to Table 12-8. Real GDP for Tyrovia for 2011 using 2005 as the base year equals
A) $1,140.
B) $880.
C) $690.
D) $560.
4) Refer to Table 12-8. Nominal GDP for Tyrovia in 2011 equals
A) $1,140.
B) $880.
C) $690.
D) $560.
Table 12-9
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 12-9. 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 12-10
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 12-10. 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 12-10. 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 2011 was less than real GDP in 2011. Given this information, we know for certain that
A) the price level in 2011 was greater than the price level in the base year.
B) the price level in 2011 was less than the price level in the base year.
C) real GDP in 2011 was less than real GDP in the base year.
D) real GDP in 2011 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.
