Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Chapter 2, Problem 4QQ
To determine
The changes in
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Students have asked these similar questions
f the GDP deflator in 2009 equals 1.25 and nominal GDP in 2009 equals $18.75 trillion, then the value of real GDP in 2009 equals _____ trillion.
Select one:
A. $12
B. $12.5
C. $15
D. $18.75
E. $15.625
20. During a presidential campaign, the incumbent argues that he should be
reelected because nominal GDP grew by 12 percent during his 4-year term in
office. You know that population grew by 4 percent over the period and that
the GDP deflator increased by 6 percent during the past 4 years. You should
conclude that real GDP per person
a. grew by more than 12 percent.
b. grew, but by less than 12 percent.
c. was unchanged.
d. decreased.
Multiplying the volume of each good produced by the price of each that obtains in the year of production, and summing over all the goods will yield?
Select one:
a.
nominal GDP.
b.
the GDP volume index.
c.
the consumer price index.
d.
the GDP deflator.
e.
real GDP.
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Similar questions
- Choose the correct statement A. We measure the change in production by comparing nominal GDP in one year with nominal GDP in another year. B. Real GDP is the value of the final goods and services produced in a given year valued at the prices that prevailed in that same year C. Real GDP must increase every year D. We measure the change in production by comparing the value of real GDP in two different years.arrow_forwardWhich of the following is not true for GDP? a. GDP covers outputs made in the past 5 years b. GDP is not an accurate measure of human welfare c. GDP reflects medical expenditure but not mortality rates d. GDP does not measure income inequalityarrow_forwardReal GDP is GDP adjusted for changes in: a. production. b. average wages. c. unemployment. d. inflation. e. interest.arrow_forward
- The GDP deflator measures A .the changes in aggregate prices of all final goods and services produced within a country’s borders within a certain time period and incorporates the relevant parts of the CPI and PPI statistics. B. the inflation rate based on consumer cost of living over time, turning dollar figures into meaningful measures of purchasing power. C. the inflation rate based on the producer price index, turning dollar figures into meaningful measures of purchasing power. D. the inflation rate of both exports and imports over time, turning dollar figures into meaningful measures of purchasing power.arrow_forwardConsider an economy that produces only computers. The quantity of computers and the price of computers in four successive years are given in the table. A. Calculate the Nominal GDP and Real GDP. What trends do you observe? Show all your calculations. B. Calculate the growth rate of nominal GDP for 2015, 2016, and 2017. Round your answers to one decimal place. What trends do you observe? C. Calculate the growth rate of real GDP for 2015, 2016, and 2017. Round your answers to one decimal place. What trends do you observe? Thank you soso much!! :)arrow_forward1. GDP rises from $4 trillion in 2010 to $7 trillion in 2013. The GDP deflator in 2013 is 120. Find real GDP in 2013. Find the percentage increase in GDP between 2010 and 2013. 2. GDP rises from $5.5 trillion in 2014, the base year, to $9.5 trillion in 2018. The GDP deflator in 2018 is 140. Find real GDP in 2018. Find the percentage increase in real GDP between 2014 and 2018.arrow_forward
- Suppose a small economy produces only smart TVs. In year one, 100,000 TVs are produced and sold at a price of $1,200 each. In year two, 125,000 TVs are produced and sold at a price of $1,000 each. As a result, A. real GDP increased B. real GDP stayed the same C. real GDP decreased D. nominal GDP decreasedarrow_forwardNominal GDP GDP deflator Year 1 $200 bill. 100 a. Express year 2 GDP in the prices of year 1 b. Calculate the growth of real GDP Year 2 $300 bill. 125arrow_forwardReal GDP is a. the nominal value of all real goods produced in the nation in year. b. Nominal GDP corrected for changes in the average of overall prices. c. a misnomer since all GDP figures have to be in dollar values. d. the value of output in current dollars.arrow_forward
- If nominal GDP increased by 6 percent during a year, while the GDP deflator increased by 4 percent, by how much did real GDP change during the year?arrow_forwardNominal GDP can be found by: Answers: A. Adding the value of all final output produced and measuring it in constant prices. B. Adding the physical amount of all final goods and services produced. C. Adding the monetary value of all final goods and services produced. D. Taking the difference between exports and imports.arrow_forwarda. What is Sri Lanka's GDP deflator if its nominal GDP is $88.9 billion (in current US$) and the real GDP is $59.34 billion? b. What is Uganda's real GDP if its nominal GDP is $27.5 billion (in current US$), and the GDP deflator is 163.4?arrow_forward
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