Question Details

1996 income expressed in 1995 dollars is  



1. The CPI (base year 1987) for 1990 is 120, for 1991 is 125 and for 1992 is 130. If the base year is changed from 1987 to 1992, what does the CPI for 1990 become? 
a) 90 b) 92.3 c) 108.3 d) 110 
2. If GDP increases in nominal terms from $600 billion in 1994 to $780 billion in 1996 and the price index (1992=100) rises from 120 to 130, how much real growth (in 1992 dollars) in GDP occurred between 1994 and 1996? 
a) $100b b) $138.5b c) $150b d) $180b 
Suppose that in 1995 the price index (base year 1992) was 110 and income was $700 billion. The corresponding numbers for 1996 are 120 and $800 billion. 
3. 1996 income expressed in 1992 dollars is 
a) less than $600b b) $600b or more but not more than $700b 
c) more than $700b but not more than $800b d) more than $800b 
4. 1996 income expressed in 1995 dollars is  
a) less than $600b b) $600b or more but not more than $700b 
c) more than $700b but not more than $800b d) more than $800b 
5. Inflation during 1996 was 
a) less than 10% b) 10% 
c) more than 10% but not more than 20% d) more than 20%



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