QUESTION 2 An increase in the nominal GDP by 6% can correspond to a decrease in real GDP by 3% and an increase of prices by 3%. O a decrease of real GDP by 4% and an increase of prices by 10%. an increase of real GDP by 5% and a decrease of prices by 1%. O an increase of real GDP by 9% and an increase of prices by 3%.

QUESTION 2 An increase in the nominal GDP by 6% can correspond to a decrease in real GDP by 3% and an increase of prices by 3%. O a decrease of real GDP by 4% and an increase of prices by 10%. an increase of real GDP by 5% and a decrease of prices by 1%. O an increase of real GDP by 9% and an increase of prices by 3%.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Real GDP is best described as: A measure of a nation's output and employment holding wages constant. A measure of a nation's output holding prices constant. A measure of a nation's output at the current level of prices. OOOO. A measure of a nation's prices holding output constant. A measure of a nation's prices at the current level of output. A Moving to the next question prevents changes to this answer. E JUL 19 tv 10 O A
Additions to inventory O a. Add to next year's GDP when goods are actually sold O b. Add to current year's GDP O C.Are prices at zero since they have not been sold O d. Are simply intoned while calculating GDP
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In the GDP equation, business spending is referred to as: O Consumption Investment O Government O Net Exports
Which of the following components makes up the largest percentage of GDP measured by aggregate spending? O imports O government purchases of goods and services consumer spending investment spending О ехрorts
Which of the following statements about nominal and real GDP is correct? O A change in real GDP reflects both a change in output as well as prices thus it is a better measurement than nominal GDP. O A change in nominal GDP could reflect either changes in output or changes in prices thus it is a better measurement than real GDP. O Nominal GDAvalues production at base year prices, whereas real GDP values production at current year prices. O Nominal GDP values production at current year prices, whereas real GDP values production at base year prices.
Between 2017 and 2018, the exports of the X economy decreased by $5 billion and its imports increased by $5 billion. All else equal? By how much has the GDP changed between the two years? Select one: a. The change in net exports will decrease GDP by $5 billion. O b. The change in net exports will decrease GDP by $10 billion. C. d. The change in net exports will increase GDP by $5 billion. O e. The decrease in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.
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