Question : 42) If the GDP deflator rises from 185 to 190, : 1388067

 

 

42) If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years?

A) 270%

B) 50%

C) 5%

D) 2.7%

 

43) If the GDP deflator is 142, by how much have prices changed since the base year?

A) Prices have increased by 42%.

B) Prices have increased by 142%.

C) Prices have decreased by 4.2%.

D) Prices have increased by 58%.

 

 

44) An inflation rate of 5% between 2013 and 2014 would be implied by a change in the GDP deflator from ________ in 2013 to ________ in 2014.

A) 105; 115

B) 200; 205

C) 400; 420

D) 375; 390

 

 

45) To make the calculation of real GDP more accurate, in 1996 the BEA switched to using

A) base-year prices.

B) current prices.

C) chain-weighted prices.

D) market prices.

 

 

46) When the BEA calculates real GDP using the average of prices in the current year and the year preceding it, and this average changes from year to year, this is called calculating GDP using

A) chained-weighted prices.

B) fixed-weight prices.

C) current-year prices.

D) fixed base-year prices.

 

47) Which of the following is a true statement about real and nominal GDP?

A) If nominal GDP increases from one year to the next, we know that production of goods and services has risen.

B) Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and service year after year.

C) Increases in average prices do not affect the calculation of nominal GDP.

D) If real GDP increases from one year to the next, we know that production of goods and services has risen.

 

 

48) If nominal GDP rises we can say that

A) production has risen and prices remain constant.

B) prices have risen and production remains constant.

C) production has risen or prices have risen or both have risen.

D) production has fallen and prices have risen.

 

 

49) The GDP deflator is equal to

A) real GDP divided by nominal GDP.

B) nominal GDP divided by real GDP, multiplied by 100.

C) nominal GDP divided by real GDP.

D) real GDP divided by nominal GDP, multiplied by 100.

 

 

50) Under what circumstances would the GDP deflator be less than 100 after the base year?

A) The GDP deflator will be less than 100 if there has been inflation relative to the base year.

B) The GDP deflator will be less than 100 if there has been inflation of less than 2% per year relative to the base year.

C) The GDP deflator will be less than 100 if there has been deflation relative to the base year.

D) There are no circumstances under which the GDP deflator could be less than 100.

 

Table 19-19

 

 

2012

2013

Nominal GDP

      $10,000

      $12,000

Real GDP

          9,500

        10,500

 

51) Refer to Table 19-19.  Given the information above, calculate the GDP deflator in 2013.

A) 114

B) 105

C) 95

D) 87

 

 

52) Refer to Table 19-19.  Given the information above, calculate the GDP deflator in 2012.

A) 87

B) 95

C) 105

D) 114