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# To determine how well an economy is doing, it is better to use A) nominal GDP figures. B

To determine how well an economy is doing, it is better to use

A) nominal GDP figures.

B) real GDP figures.

C) GDP figures measured by the expenditure approach.

D) GDP figures measured by the income approach.

92) If nominal GDP in 1987 was \$500 billion with a price index of 100, what would be the real GDP in 1995 if the 1995 nominal GDP was \$900 billion and the 1995 price index was 140?

A) \$900 billion

B) \$540 billion

C) \$800 billion

D) \$643 billion

93) If nominal GDP in 1987 was \$1 trillion, nominal GDP in 1997 was \$2 trillion, and the 1987 and 1997 price indexes were 100 and 250 respectively,

A) real GDP increased between 1987 and 1997.

B) real GDP decreased between 1987 and 1997.

C) real GDP remained constant.

D) we cannot draw any conclusions about changes in real GDP.

94) If nominal GDP in 1992 was \$3,000 billion, and the price level index was 330 (1977 = 100), then real GDP in terms of the price level in 1977 was about

A) \$105 billion.

B) \$4,220 billion.

C) \$909 billion.

D) \$537 billion.

95) From the base year (1990) to the next year (1991) the price index increases from 100 to 102.5. If nominal GDP is \$2,800 in 1991, then the real GDP in 1991 is

A) \$2,800 multiplied by 102.5 and divided by 100.

B) \$2,800.

C) \$2,800 divided by 102.5 and multiplied by 100.

D) \$2,800 divided by 102.5.

Table 5-5

NominalPriceReal

YearGDPDeflatorGDP

1990\$3,405.087.2

199191.0\$4,146.2

19924,038.794.4

199396.94,405.2

19944,539.94,539.9

19954,900.4103.9

1996108.54,839.4

19975,222.2113.1

1998117.84,819.6

19995,967.14,923.6

20006,158.8122.9

96) Refer to Table 5-5. The value of the GDP deflator in 1999 is

A) 121.2.

B) 122.1.

C) 122.9.

97) Refer to Table 5-5. Between 1999 and 2000 real GDP

A) increased by \$191.7 billion.

B) increased by \$1.7 billion.

C) increased by \$87.9 billion.

D) increased by \$158.2 billion.

98) Refer to Table 5-5. The nominal GDP for 1998 is

A) \$4,819.6.

B) \$4,091.3.

C) \$5,677.5.

99) Refer to Table 5-5. Real GDP for year 1997 was

A) \$4,819.6 billion.

B) \$5,222.2 billion.

C) \$4,829.5 billion.

100) Per capita GDP is

A) GDP divided by the population.

B) GDP divided by a price index.

C) GDP minus depreciation.

D) population divided by GDP.

Dec 07 2019 View more View Less Get Solution