Question

Question 1

Real measurements are

expressed in constant dollars.

expressed in current dollars.

expressed using today’s currency.

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Question 2

To measure a real increase in wages,

the wages would have to be adjusted for inflation overtime.

the changes would have to be averaged.

the increase would have to be compared to the growth in GDP.

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Question 3

If inflation occurs in a given year,

the change in the real measurement (GDP) would be equal to the change in the nominal one.

the change in the real measurement (GDP) would be smaller than the change in the nominal one.

the change in the real measurement (GDP) would be greater than the change in the nominal one.

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Question 4

Which of the following best defines real GDP?

Real GDP is defined as the total dollar value of final goods and services produced within a country in one year after adjustment for inflation.

Real GDP is defined as the current total dollar value of final goods and services produced within a country.

Real GDP is defined as the total dollar value of final goods and services produced within a country in one year before adjustment for inflation.

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Question 5

Which of the following describes the macroeconomy?

The US inflation rate has been under 2% annually over the last 7 years.

The online retail business has been growing at the expense of traditional retail stores.

The oil and gas sector in Texas has seen the largest job gains in 2017.

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Question 6

Economic indicators can help give us

an understanding of the state of the economy.

a direction in which economists can push the economy at the macro level.

insight into which way the stock market is going to move over the coming year.

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Question 7

In his Macroeconomics class, Louis is working on a project for which he needs to understand the state of the U.S. economy. Which of the following is an economic indicator that Louis could use to help him with this task?

the unemployment rate

the number of financial laws that were passed in the last year

the number of businesses that failed in the last quarter

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Question 8

Which of the following is counted as part of GDP?

The purchase of your grandfather’s old car by a neighbor.

The purchase of a snow plough by the city of Minneapolis.

The predicted inventory for next year.

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Question 9

Final goods or services used to compute GDP refer to:

the factors of production used to produce output.

the value of outstanding shares of stock of manufacturing firms.

goods and services purchased by the ultimate users.

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Question 10

GDP includes

all purchases of products from the federal government, consumers in the U.S. and around the world.

purchases of U.S. made products by consumers, private businesses and the government sector.

purchases of U.S. made products by the federal government, consumers and private businesses in the U.S. only.

Answer 1

Question 1

Real measurement are always taken by keeping price level constant.

Due to this, real measurements are based on some past year taken as base year.

So, in a sense, real measurement are expressed in constant dollars.

Hence, the correct answer is the option (1).

Question 2

Real value of money is calculated by adjusting the nominal value of money for any change in the price level.

So,

To measure a real increase in wages, the wages would have to be adjusted for inflation overtime.

Hence, the correct answer is the option (1).

Question 3

Inflation rate is the difference between the growth rate of nominal GDP and the growth rate of real GDP.

So,

If inflation occurs in a given year, the change in the real measurement (GDP) would be smaller than the change in the nominal one.

Hence, the correct answer is the option (2).

Question 4

Real GDP can be defined as the value of final goods and services produced within the country during a given year valued at base year prices or are adjusted for inflation.

Hence, the correct answer is the option (1).