If nominal GDP in 2001 is $9 trillion, and 2001 real GDP in 1996 prices is $6 trillion, the GDP deflator price index is

11) If nominal GDP in 2001 is $9 trillion, and 2001 real GDP in 1996 prices is $6 trillion, the GDP
deflator price index is
A) 7.
B) 100.
C) 150.
D) 200.
Answer: C
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12) When prices are measured in terms of fixed (base-year) prices they are called ________ prices.
A) nominal
B) real
C) inflated
D) aggregate
Answer: B
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13) The measure of the aggregate price level that is most frequently reported in the media is the
________.
A) GDP deflator
B) producer price index
C) consumer price index
D) household price index
Answer: C
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14) To calculate the growth rate of a variable, you will
A) calculate the percentage change from one time period to the next.
B) calculate the difference between the two variables.
C) add the ending value to the beginning value.
D) divide the increase by the number of time periods.
Answer: A
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15) If real GDP grows from $10 trillion in 2002 to $10.5 trillion in 2003, the growth rate for real GDP
is
A) 5%.
B) 10%.
C) 50%.
D) 0.5%.
Answer: A
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16) If real GDP in 2002 is $10 trillion, and in 2003 real GDP is $9.5 trillion, then real GDP growth
from 2002 to 2003 is
A) 0.5%.
B) 5%.
C) 0%.
D) -5%.
Answer: D
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17) If the aggregate price level at time t is denoted by Pt, the inflation rate from time t - 1 to t is
defined as
A) πt = (Pt - Pt - 1)/Pt - 1.
B) πt = (Pt + 1 - Pt - 1) /Pt - 1.
C) πt = (Pt + 1 - Pt) /Pt.
D) πt = (Pt - Pt - 1) /Pt.
Answer: A
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18) If the price level increases from 200 in year 1 to 220 in year 2, the rate of inflation from year 1 to year 2 is
A) 20%.
B) 10%.
C) 11%.
D) 120%.
Answer: B
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19) If the CPI is 120 in 1996 and 180 in 2002, then between 1996 and 2002, prices have increased by
A) 180%.
B) 80%.
C) 60%.
D) 50%.
Answer: D
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20) If the CPI in 2004 is 200, and in 2005 the CPI is 180, the rate of inflation from 2004 to 2005 is
A) 20%.
B) 10%.
C) 0%.
D) -10%.
Answer: D
Ques Status: Previous Edition