Question Details

If in 1994 nominal GDP is 540 and real GDP is 500, the price index for 1994 is  



1. Suppose nominal GDP is $566 billion in 1986, $600 billion in 1987 and $642 billion in 1988. If 1986 is the base year, the price index is 105 in 1987, and real growth in 1988 is 3%, from this information, the price index in 1988 is 
a) less than 109 b) 109 c) greater than 109 but less than 110 d) 110 or over 
2. Suppose hamburgers cost $1.20 last year and $1.32 this year, and the overall price index (the GDP deflator) rose from 110 last year to 120 this year. 
How much will 1000 hamburgers contribute to this year's real GDP? 
a) $1,000 b) $1,100 c) $1,200 d) $1,320 
3. If in 1994 nominal GDP is 540 and real GDP is 500, the price index for 1994 is  
a) 100 b) 108 c) 140 d) not enough information to tell 5 
4. Suppose the price index is 110 and a typical basket of goods and services costs $3,300. What would this typical basket have cost in the base year? 
a) $30 b) $3,000 c) $3,630 d) not enough information to tell 
5. If the CPI changes from 110 in 1993 to 120 in 1994, what is the rate of inflation? 
a) less than 10% b) 10% c) more than 10% d) insufficient information to tell



Economics Assignment Help, Economics Homework help, Economics Study Help, Economics Course Help