Question Details

Real Gross Domestic Product is


1) Of the following, which is correct?
A) Nominal GDP does not change when the production of goods and services increases.
B) Nominal GDP is not affected by changes in prices of goods and services.
C) Nominal GDP increases when the prices of goods and services increase.
D) Real GDP changes only when the prices of goods and services really change.
2) Real GDP is
A) an increase in the average level of prices.
B) the value of total production when the unemployment rate is 6 percent.
C) the value of total production of all the nationʹs farms, factories, shops and offices measured
in the prices of a single year.
D) the value of total production of all the nationʹs farms, factories, shops and offices measured
at the prices of the year it was produced.
3) Real GDP measures the
A) total profits earned by all businesses valued using prices from a single year.
B) changes in the prices of output measured in dollars.
C) general upward drift in prices.
D) value of total production linked to prices of a single year.
4) ________ gross domestic product is the value of ________ linked back to the prices of a single
year.
A) Real; total production
B) Real; production possibilities
C) Productivity; the consumer price index
D) Nominal; total production
5) Real Gross Domestic Product is
A) the amount of people unemployed divided by the total labor force.
B) the productivity of labor.
C) the most that can be produced when the economyʹs resources are fully employed.
D) the value of total production linked back to the prices of a single year.




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