Economics CC 2 Sec ON 1 Week 1 Assignment 2

Economics CC 2 Sec ON 1 Week 1 Assignment 2 | chatbot las positas community college

Question 1

If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 120, real GDP

·         rises.    

·         falls.    

·         stays the same.    

·         could either be rising or falling.

Question 2

Which of the following is included in GDP calculations?    

·         the college tuition paid to enroll in a course    

·         a check for $50 received on your birthday    

·         cash income received by a self-employed landscaper that is not reported to the IRS

Question 3

If real GDP increases and the GDP deflator also increases:    

·         nominal GDP must also have risen.    

·         nominal GDP must have fallen.    

·         nominal GDP could have either risen or fallen.    

·         nominal GDP must stay the same

Question 4

Exhibit 2

The table given below lists the price per unit and output of fish and skirts (the only two goods produced by a nation) for the years 1990 and 2012.

Goods   1990

Quantities          

1990 Prices          2012 Quantities

2012 Prices

fish         15           $0.60     20           $0.80

skirts       8            $4.00     15           $4.20

Refer to Exhibit 2. Assuming that 1990 is the base year, Real GDP in 2012 is  

·         $41  

·         $45.6  

·         $79  

·         $72

Question 5

If nominal GDP rose by 8 percent and the GDP deflator increased from 100 to 120 in a given year, real GDP:    

·         rose by 10 percent.    

·         rose by 5 percent.    

·         fell by 10 percent  

·         fell by 5 percent.