Question 1

If real GDP rises and the GDP price index has increased:

Accepted Answer

A)   the percentage increase in nominal GDP must have been less than the percentage increase in the price level.
B)   nominal GDP may have either increased or decreased.
C)   nominal GDP must have increased.
D)   nominal GDP must have fallen.E) C) and D)
F) All of the above

Question 2

In Year 1, inventories rose by $25 billion. In Year 2, inventories fell by $20 billion. In calculating total investment, national income accountants would have:

Accepted Answer

A)   decreased it by $25 billion in Year 1 and increased it by $20 billion in Year 2.
B)   decreased it by $25 billion in Year 1 and increased it by $5 billion in Year 2.
C)   increased it by $25 billion in Year 1 and decreased it by $5 billion in Year 2.
D)   increased it by $25 billion in Year 1 and decreased it by $20 billion in Year 2.E) A) and C)
F) None of the above

Question 3

The Chain-weighted index links each year to the previous year through:

Accepted Answer

A)   the use of nominal GDPs in prior years.
B)   the use of both the prior year prices and current year prices.
C)   the use of real GDPs in prior years.
D)   the use of base year implicit price index.E) A) and C)
F) A) and B)

Exam 5: Measuring the Economys Output

If real GDP rises and the GDP price index has increased:

Correct Answer
verified

The Chain-weighted index links each year to the previous year through:

Correct Answer
verified

In Year 1, inventories rose by $25 billion. In Year 2, inventories fell by $20 billion. In calculating total investment, national income accountants would have:

Correct Answer
verified

Exam 5: Measuring the Economys Output

If real GDP rises and the GDP price index has increased:

Correct AnswerverifiedShow Answer

The Chain-weighted index links each year to the previous year through:

Correct AnswerverifiedShow Answer

In Year 1, inventories rose by $25 billion. In Year 2, inventories fell by $20 billion. In calculating total investment, national income accountants would have:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified