Deck 21: Sizing up the Economy Using Gdp

Question 1

Which of the scenarios below represents a microeconomic decision?

A)Laura is trying to decide whether to buy one more slice of cake.
B)The Ugandan government is contemplating raising interest rates in the economy.
C)The Mexican president is trying to decide whether to increase government spending.
D)A new bill on health care spending is being debated in Congress.

Answer 1

A

Question 2

Which of the scenarios below represents a macroeconomic decision?

A)You are deciding whether to buy a used textbook or rent a textbook for the semester.
B)Your school is making a decision on whether to hire a new professor.
C)The president of Uzbekistan is deciding whether to boost spending on the tourism sector.
D)Marios is making a decision on which university to attend.

Answer 2

C

Question 3

Which of the scenarios below represents a macroeconomic decision?

A)You are deciding whether to buy a used textbook or rent a textbook for the semester.
B)Your school is making a decision on whether to hire a new professor.
C)The current administration is considering a major stimulus package to bring the economy out of a severe recession.
D)Marios is making a decision on which university to attend.

Answer 3

C

Question 4

What is the difference between income from a microeconomic standpoint versus income from a macroeconomic standpoint?

A)In microeconomics, income refers to one individual's income, whereas in macroeconomics, income refers to the total income in the entire economy.
B)In microeconomics, income refers to your individual income before taxes, whereas in macroeconomics, income refers to your individual income after taxes have been deducted.
C)In microeconomics, income refers to your monthly income, whereas in macroeconomics, income refers to your annual income.
D)In microeconomics, income refers to the income you earn, whereas in macroeconomics, income refers to income less savings.

Question 5

What is the difference between output from a microeconomic standpoint versus output from a macroeconomic standpoint?

A)In microeconomics, output refers to production by businesses, whereas in macroeconomics, output refers to production by government agencies.
B)In microeconomics, output refers to production by domestic businesses, whereas in macroeconomics, output refers to production by foreign-owned businesses.
C)In microeconomics, output refers to your monthly output, whereas in macroeconomics, output refers to your annual output.
D)In microeconomics, output refers to what your individual business produces, whereas in macroeconomics, output refers to the output produced by all the businesses in the economy.

Question 6

What is the difference between spending from a microeconomic standpoint versus spending from a macroeconomic standpoint?

A)In microeconomics, spending refers to one individual's spending, whereas in macroeconomics, spending refers to government expenditure.
B)In microeconomics, spending refers to expenditure on consumer goods only, whereas in macroeconomics, spending refers to business expenditures only.
C)In microeconomics, spending refers to domestic spending, whereas in macroeconomics, spending refers to foreign spending.
D)In microeconomics, spending refers to spending by you, or your family, or your company, whereas in macroeconomics, spending refers to the spending by all consumers, all businesses, and the government in the economy.

Question 7

The circular flow of income shows that total spending is _____ total income.

A)greater than
B)equal to
C)less than
D)unrelated to

Question 8

Refer to the diagram of the circular flow of income. Based on the diagram, box 1 must be:

A)businesses.
B)households.
C)the market for resources.
D)the market for outputs.

Question 9

Refer to the diagram of the circular flow of income. Based on the diagram, box 3 must be:

A)businesses.
B)households.
C)the market for resources.
D)the market for outputs.

Question 10

Refer to the diagram of the circular flow of income. Based on the diagram, box 4 must be:

A)businesses.
B)households.
C)the market for inputs.
D)the market for outputs.

Question 11

Refer to the diagram of the circular flow of income. Based on the diagram, box 2 must be:

A)businesses.
B)households.
C)the market for resources.
D)the market for outputs.

Question 12

Refer to the diagram of the circular flow of income. Based on the diagram, the arrow going FROM box 2 to box 3 must be:

A)payments for inputs used by businesses.
B)incomes earned by resources.
C)spending by households.
D)earnings by businesses.

Question 13

Refer to the diagram of the circular flow of income. Based on the diagram, the arrow going FROM box 4 to box 3 must be:

A)inputs used by businesses.
B)incomes earned by resources.
C)spending by households.
D)earnings by businesses.

Question 14

Refer to the diagram of the circular flow of income. Based on the diagram, the arrow going FROM box 2 to box 1 must be:

A)inputs used by businesses.
B)spending by households.
C)output bought by households.
D)earnings by businesses.

Question 15

Refer to the diagram of the circular flow of income. The key lessons from this diagram are that:
(i) all flows of resources are matched by flows of money.
(ii) the market value of total output must be equal to total spending.
(iii) total spending must equal total income.
(iv) all inputs are provided by businesses.

A)(i) and (iv)
B)(ii) and (iii)
C)(i), (ii), and (iii)
D)(i), (ii), (iii), and (iv)

Question 16

GDP per person is calculated as:

A)total GDP divided by the population.
B)total consumption divided by the population.
C)total GDP multiplied by the population.
D)the market value of all final goods and services produced within a country in a given year.

Question 17

In 2004, Canada's GDP was approximately $1.13 trillion, and its population was about 32 million. What was Canada's approximate GDP per person in 2004?

A)$43,500
B)$35,290
C)$3,530
D)$36,160

Question 18

In 2010, Canada's GDP was approximately $1,357 billion, and its population was about 34.12 million. What was Canada's approximate GDP per person in 2010?

A)$39,770
B)$3,980
C)$46,060
D)$26,246

Question 19

In 2017, Canada's GDP was approximately $1.57 trillion, and its population was about 36.96 million. What was Canada's approximate GDP per person in 2017?

A)$5,000
B)$58,027
C)$42,590
D)$15,700

Question 20

If Malaysia's GDP is approximately $315 billion, and its population is 32 million, what is its approximate GDP per person?

A)$9,844
B)$98,438
C)$984.40
D)$9.844

Question 21

If Turkey's GDP is approximately $851 billion, and its population is 81 million, what is its approximate GDP per person?

A)$1,051
B)$81,000
C)$105,062
D)$10,500

Question 22

The "market value" of a good or service refers to the:

A)current dollar value of that good or service.
B)units of that good or service that are purchased by consumers.
C)units of that good or service that are produced in the current period.
D)total market demand for that good or service.

Question 23

A "final" good or service is one that is:

A)finished and ready for the final user.
B)intermediate and ready to be used as an input.
C)not for sale.
D)not being produced for the market.

Question 24

You just bought two used textbooks for $25 each. How much does GDP change because of your purchase?

A)GDP rises by $50.
B)GDP falls by $50.
C)GDP rises by $25.
D)GDP does not change.

Question 25

You purchase a new car (produced this year) for $38,000. After six months, you sell the car for $31,500. How much does GDP rise because of these two transactions?

A)GDP rises by $31,500.
B)GDP rises by $69,500.
C)GDP rises by $38,000.
D)GDP rises by $6,500.

Question 26

You own and run a bakery. Last month, you purchased $760 worth of flour, eggs, butter, chocolate, and frosting. Using these inputs, you made and sold 12 large wedding cakes for an average price of $525. How much did GDP change?

A)GDP rises by $760.
B)GDP rises by $6,300.
C)GDP rises by $7,060.
D)GDP rises by $5,540.

Question 27

You own a factory that makes wasabi peas. Last month, you purchased $560,000 worth of wasabi paste, peas, cane sugar, palm oil and sea salt. Using these inputs, you made and sold 1 million snack bags of wasabi peas at $3.49 each. How much did GDP change?

A)GDP rises by $2,930,000.
B)GDP rises by $560,000.
C)GDP rises by $3,490,000.
D)GDP rises by $4,050,000.

Question 28

You have decided to live off of nature. You cut down an old dead tree and use the wood to make a small canoe for yourself. Then you fashion a fishing rod from some old wire and an old hook. You dig up worms to use as bait, and you catch two fish and cook them for your dinner. Based on all these activities, how much did GDP change?

A)GDP rises by the market value of the canoe, the fishing rod, and the fish.
B)GDP rises by the market value of the fish only.
C)GDP does not change.
D)GDP rises by the value of the canoe because it is a durable good.

Question 29

Total spending in the economy is calculated as:

A)Y - C - I.
B)Y - I - G - NX.
C)C + I + G + (X - M).
D)C + I + G + (M - X).

Question 30

Below is U.S. economic data for 2018. What was total spending?
$$\begin{array} { | l | r | } \hline \text { Consumption } & \$ 13.999 \text { trillion } \\\hline \text { Investment } & \$ 3.628 \text { trillion } \\\hline \text { Government spending } & \$ 3.591 \text { trillion } \\\hline \text { Exports } & \$ 2.510 \text { trillion } \\\hline \text { Imports } & \$ 3.148 \text { trillion } \\\hline\end{array}$$

A)$20.58 trillion
B)$21.86 trillion
C)$23.73 trillion
D)$21.22 trillion

Question 31

If an economy is a closed economy, then the equation for total spending is:

A)C + I +
B)C + I + G - NX.
C)Y + C + I.
D)C + I + G + (X - M).

Question 32

Below is U.S. economic data for 2017. What was total spending?
$$\begin{array} { | l | r | } \hline \text { Consumption } & \$ 13.312 \text { trillion } \\\hline \text { Investment } & \$ 3.371 \text { trillion } \\\hline \text { Government spending } & \$ 3.412 \text { trillion } \\\hline \text { Exports } & \$ 2.357 \text { trillion } \\\hline \text { Imports } & \$ 2.932 \text { trillion } \\\hline\end{array}$$

A)$22.45 trillion
B)$19.52 trillion
C)$20.67 trillion
D)$20.10 trillion

Question 33

Below is economic data for Germany for 2016 (measured in billions of current euros). What was total spending?
$$\begin{array} { | l | r | } \hline \text { Consumption } & 1,649.79 \\\hline \text { Investment } & 636.42 \\\hline \text { Government spending } & 620.01 \\\hline \text { Exports } & 1,442.41 \\\hline \text { Imports } & 1,211.64 \\\hline\end{array}$$

A)2,675
B)4,348
C)2,906
D)3,137

Question 34

Based on the following statistics, how much are net exports?
$$\begin{array} { | l | r | } \hline \text { Consumption } & \$ 13.312 \text { trillion } \\\hline \text { Investment } & \$ 3.371 \text { trillion } \\\hline \text { Government spending } & \$ 3.412 \text { trillion } \\\hline \text { Exports } & \$ 2.357 \text { trillion } \\\hline \text { Imports } & \$ 2.932 \text { trillion } \\\hline\end{array}$$

A)$2.357 trillion
B)-$0.575 trillion
C)$20.67 trillion
D)$0.575 trillion

Question 35

Based on the following statistics, how much is consumption?
$$\begin{array} { | l | c | } \hline \text { Total spending } & \$ 11.62 \text { trillion } \\\hline \text { Investment } & \$ 2.56 \text { trillion } \\\hline \text { Government spending } & \$ 2.95 \text { trillion } \\\hline \text { Exports } & \$ 1.80 \text { trillion } \\\hline \text { Imports } & \$ 2.18 \text { trillion } \\\hline\end{array}$$

A)$11.62 trillion
B)$5.13 trillion
C)$6.49 trillion
D)-$0.38 trillion

Question 36

When your household buys goods and services, this is called:

A)consumption.
B)business expenditure.
C)gross domestic product.
D)disposable income.

Question 37

Which of the following is an example of a durable good?

A)fresh flowers from the florist
B)your haircut
C)your new car
D)a soft drink

Question 38

Which of the following is an example of a durable good?

A)a doctor's visit
B)a cell phone bill
C)a ream of printing paper
D)a new washing machine

Question 39

If the local construction company buys an industrial 3D printer, this expenditure is:

A)consumption.
B)investment.
C)government expenditure.
D)exports.

Question 40

Transfer payments are payments that:

A)transfer income from one person to another.
B)involve the transfer of funds across international borders.
C)involve the transfer of funds from one bank to another.
D)amount to the largest part of GDP.

Question 41

Which of the following is an example of a transfer payment?

A)the salary paid to a corporal in the marines
B)the salary earned by a professor at a state university
C)a social security payment
D)a paycheck from your part-time job

Question 42

Which of the following is an example of transfer payments?

A)military salaries
B)unemployment benefits
C)government loans
D)interest earned on savings in banks

Question 43

Spending on rebuilding an interstate highway connecting New York City and Hartford, Connecticut, is an example of:

A)investment.
B)exports.
C)consumption.
D)government expenditure.

Question 44

When the U.S. government buys goods and services, this is called:

A)government purchases.
B)business purchases.
C)gross domestic product.
D)consumption.

Question 45

When a U.S. consumer buys Canadian maple syrup at the grocery store, this purchase is:

A)an import.
B)an export.
C)gross domestic product.
D)a transfer payment.

Question 46

When a U.S. consumer buys a Battenberg cake made in London, this is:

A)a transfer payment.
B)an export.
C)an import.
D)a government purchase.

Question 47

Which of the following is (are) included in investment?
(i) military spending
(ii) the purchase of an aircraft by a domestic airline
(iii) the purchase of $45,000 worth of bonds
(iv) the purchase of $32,000 worth of stock
(v) social security payments
(vi) the construction of a highway by the federal government

A)(i), (ii), (v), and (vi)
B)(ii), (iii), and (iv)
C)(ii) only
D)(i) and (vi)

Question 48

Dale is a stay-at-home-parent whose typical day consists of getting the kids ready for school, doing the laundry, cooking three meals, and cleaning the house. How are Dale's home activities counted in GDP?

A)They are counted by subtracting Dale's opportunity cost in terms of lost income.
B)They are counted at market value.
C)They are counted by assigning a value that is equivalent to what it would have taken to pay a housekeeper to perform the same tasks.
D)They are not counted.

Question 49

Consider the following graphs, which are discussed in the textbook. Focus on the graph that looks at the relationship between GDP per person and infant deaths per 1,000 live births. What can explain this relationship?

A)Infant mortality declines only when GDP per person is above $25,000 per year.
B)As real GDP per person rises, infant mortality rises.
C)As real GDP per person rises, maternal and fetal health increase due to better health care, education, sanitation, and nutrition.
D)As life expectancy increases, GDP per person increases at the same rate.

Question 50

Consider the following graphs, which are discussed in the textbook. Focus on the graph that looks at the relationship between GDP per person and life expectancy. What can explain this relationship?

A)Higher income per person allows for better health care, sanitation, and nutrition.
B)Higher income per person leads to a higher mortality rate.
C)Lower income per person is a result of fewer years of schooling.
D)As life expectancy increases, GDP per person increases at the same rate.

Question 51

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the nominal GDP for last year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Textbooks } \\\text { Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 5,000 & \$ 50 \\\hline \text { This year } & 5,250 & \$ 55 \\\hline\end{array}$$

A)$250,000
B)$262,500
C)$288,750
D)$275,625

Question 52

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the nominal GDP for this year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Textbooks } \\\text { Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 5,000 & \$ 50 \\\hline \text { This year } & 5,250 & \$ 55 \\\hline\end{array}$$

A)$250,000
B)$262,500
C)$288,750
D)$275,625

Question 53

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the average price level between the two years?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Textbooks } \\\text { Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 5,000 & \$ 50 \\\hline \text { This year } & 5,250 & \$ 55 \\\hline\end{array}$$

A)$105
B)$55
C)$50
D)$52.50

Question 54

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the real GDP for last year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Textbooks } \\\text { Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 5,000 & \$ 50 \\\hline \text { This year } & 5,250 & \$ 55 \\\hline\end{array}$$

A)$250,000
B)$262,500
C)$288,750
D)$275,625

Question 55

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the real GDP for this year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Textbooks } \\\text { Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 5,000 & \$ 50 \\\hline \text { This year } & 5,250 & \$ 55 \\\hline\end{array}$$

A)$250,000
B)$262,500
C)$288,750
D)$275,625

Question 56

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the growth rate of real GDP between the two years using last year as the base year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Textbooks } \\\text { Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 5,000 & \$ 50 \\\hline \text { This year } & 5,250 & \$ 55 \\\hline\end{array}$$

A)5%
B)10%
C)15%
D)2.5%

Question 57

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the nominal GDP for last year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Barrels of } \\\text { Oil Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 80,000 & \$ 60 \\\hline \text { This year } & 83,000 & \$ 63 \\\hline\end{array}$$

A)$5,104,500
B)$5,229,000
C)$4,920,000
D)$4,800,000

Question 58

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the nominal GDP for this year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Barrels of } \\\text { Oil Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 80,000 & \$ 60 \\\hline \text { This year } & 83,000 & \$ 63 \\\hline\end{array}$$

A)$5,104,500
B)$5,229,000
C)$4,920,000
D)$4,800,000

Question 59

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the average price level between the two years?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Barrels of } \\\text { Oil Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 80,000 & \$ 60 \\\hline \text { This year } & 83,000 & \$ 63 \\\hline\end{array}$$

A)$60
B)$61.50
C)$123
D)$63

Question 60

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the real GDP for this year using last year as the base year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Barrels of } \\\text { Oil Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 80,000 & \$ 60 \\\hline \text { This year } & 83,000 & \$ 63 \\\hline\end{array}$$

A)$5,104,500
B)$5,229,000
C)$4,980,000
D)$4,800,000

Question 61

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the real GDP for this year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Barrels of } \\\text { Oil Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 80,000 & \$ 60 \\\hline \text { This year } & 83,000 & \$ 63 \\\hline\end{array}$$

A)$5,104,500
B)$5,229,000
C)$4,920,000
D)$4,800,000

Question 62

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the growth rate of real GDP between the two years?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Barrels of } \\\text { Oil Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 80,000 & \$ 60 \\\hline \text { This year } & 83,000 & \$ 63 \\\hline\end{array}$$

A)2.25%
B)9%
C)5%
D)3.75%

Question 63

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the nominal GDP for last year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Tons of Frozen } \\\text { Fish Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 100 & \$ 1,800 \\\hline \text { This year } & 105 & \$ 1,850 \\\hline\end{array}$$

A)$180,000
B)$191,625
C)$182,500
D)$194,250

Question 64

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the nominal GDP for this year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Tons of Frozen } \\\text { Fish Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 100 & \$ 1,800 \\\hline \text { This year } & 105 & \$ 1,850 \\\hline\end{array}$$

A)$180,000
B)$191,625
C)$182,500
D)$194,250

Question 65

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the average price between the two years?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Tons of Frozen } \\\text { Fish Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 100 & \$ 1,800 \\\hline \text { This year } & 105 & \$ 1,850 \\\hline\end{array}$$

A)$1,825
B)$1,800
C)$1,850
D)$1,900

Question 66

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for last year using this year as the base year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Tons of Frozen } \\\text { Fish Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 100 & \$ 1,800 \\\hline \text { This year } & 105 & \$ 1,850 \\\hline\end{array}$$

A)$180,000
B)$191,625
C)$185,000
D)$194,250

Question 67

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for this year?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Tons of Frozen } \\\text { Fish Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 100 & \$ 1,800 \\\hline \text { This year } & 105 & \$ 1,850 \\\hline\end{array}$$

A)$180,000
B)$191,625
C)$182,500
D)$194,250

Question 68

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the growth rate of real GDP between the two years?
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Tons of Frozen } \\\text { Fish Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 100 & \$ 1,800 \\\hline \text { This year } & 105 & \$ 1,850 \\\hline\end{array}$$

A)3%
B)8%
C)5%
D)11%

Question 69

Nominal GDP grew by 4%, and the growth rate of real GDP was 2.5%. What was the rate of inflation?

A)1.5%
B)4%
C)2.5%
D)6.5%

Question 70

During 2017 and 2018, nominal GDP in the United States grew by 4.3%, and the rate of inflation was 1.9%. What was the growth rate of real GDP between the two years?

A)2.4%
B)6.2%
C)1.9%
D)4.3%

Question 71

During 2000 and 2001, nominal GDP in the United States grew by 3.2%, and the rate of inflation was 2.2%. What was the growth rate of real GDP between the two years?

A)1%
B)2.2%
C)4.4%
D)5.4%

Question 72

During 1994 and 1995, nominal GDP in the United States grew by 4.8%, and the rate of inflation was 2.1%. What was the growth rate of real GDP between the two years?

A)6.9%
B)2.7%
C)2.1%
D)4.8%

Question 73

If inflation in the United States was 1.9% in 2014, and the growth rate of real GDP was 2.5%, what was the nominal GDP growth rate?

A)0.6%
B)4.4%
C)1.9%
D)2.5%

Question 74

In 1933, if inflation in the United States was -2.8% and the growth rate of real GDP was -1.2%, what was the nominal GDP growth rate?

A)-1.2%
B)1.6%
C)-1.6%
D)-4%

Question 75

In 1939, inflation in the United States was -1%, but at the same time, the country recorded a real GDP growth rate of 8%. What was the nominal GDP growth rate?

A)-2%
B)9%
C)8%
D)7%

Question 76

In 1945, the United States recorded real GDP growth of -1% and nominal GDP growth of 1.6%. What was the inflation rate in 1945?

A)0.6%
B)-0.6%
C)2.6%
D)-2.6%

Question 77

In 1986, the United States recorded real GDP growth of 3.5% and nominal GDP growth of 5.5%. What was the inflation rate in 1945?

A)9%
B)3.5%
C)2%
D)-2%

Question 78

In 2007, the United States recorded real GDP growth of approximately -2.6% and nominal GDP growth of -1.8%. What was the inflation rate in 2007?

A)-4.4%
B)0.8%
C)4.4%
D)-0.8%

Question 79

The rule of 70 is a simple rule of thumb for:

A)evaluating long-term growth rates.
B)calculating the level of real GDP.
C)finding the sum of all expenditures in the economy.
D)calculating the unemployment rate.

Question 80

The rule of 70 tells us roughly:

A)what the total amount of expenditure is in the economy.
B)how much unemployment exists in the economy.
C)how long it will take something to double if you divide 70 by its annual growth rate.
D)how income is distributed in the country.