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Table 23-6
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is
2013 .
Prices and Quantities
Year
Price of
Waffles
Quantity of
Waffles
Price of Pancakes
Quantity of
Pancakes
2010
$2.00
80
$1.00
100
2011
$2.00
100
$2.00
120
2012
$2.00
120
$3.00
150
2013
$4.00
150
$3.00
200
67. Refer to Table 23-6. In 2010, this country's nominal GDP was
a.
$260.
b.
$440.
c.
$620.
d.
$760.
68. Refer to Table 23-6. In 2011, this country's nominal GDP was
a.
$260.
b.
$440.
c.
$620.
d.
$760.
69. Refer to Table 23-6. In 2010, this country's real GDP was
a.
$620.
b.
$260.
c.
$400.
d.
$630.
70. Refer to Table 23-6. In 2011, this country's real GDP was
a.
$320.
b.
$440.
c.
$760.
d.
$770.
71. Refer to Table 23-6. In 2012, this country's real GDP was
a.
$510.
b.
$690.
c.
$930.
d.
$780.
72. Refer to Table 23-6. In 2013, this country's real GDP was
a.
$500.
b.
$700.
c.
$900.
d.
$1200.
73. Refer to Table 23-6. In 2010, this country's GDP deflator was
a.
41.9.
b.
100.
c.
165.0.
d.
This cannot be calculated from the information given.
74. Refer to Table 23-6. In 2013, this country's GDP deflator was
a.
1.0.
b.
100.0.
c.
171.4.
d.
240.0.
75. Refer to Table 23-6. In 2011, this country's GDP deflator was
a.
57.9.
b.
100.0.
c.
137.5.
d.
169.2.
76. Refer to Table 23-6. In 2012, this country's GDP deflator was
a.
74.2.
b.
100.0.
c.
171.4.
d.
240.0.
77. Refer to Table 23-6. From 2012 to 2013, this country's output grew
a.
28.2%.
b.
29.0%.
c.
29.6%.
d.
73.9%.
78. Refer to Table 23-6. This country's inflation rate from 2010 to 2011 was
a.
1.38%.
b.
38.20%.
c.
138.20%.
d.
41.90.
79. Refer to Table 23-6. This country's inflation rate from 2012 to 2013 was
a.
35.6%.
b.
25.8%.
c.
34.8%.
d.
100.0%.
Table 23-7
The table below contains data for the country of Togogo. The base year is 1974.
Year
Nominal
GDP
GDP
Deflator
1974
$2000
100
1975
$3000
120
1976
$3750
150
1977
$6000
200
80. Refer to Table 23-7. Which of the following is not correct?
a.
This economy experienced growth from 1974 to 1975.
b.
This economy experienced growth from 1975 to 1976.
c.
This economy experienced growth from 1976 to 1977.
d.
This economy experienced inflation from 1974 to 1975, from 1975 to 1976, and from 1976 to 1977.
81. Refer to Table 23-7. From 1975 to 1976,
a.
inflation was 25% and output did not grow.
b.
inflation was 25% and output grew.
c.
inflation was 50% and output did not grow.
d.
inflation was 50% and output grew.
82. Refer to Table 23-7. From 1976 to 1977,
a.
inflation was 33.3% and output grew at a rate of 20%.
b.
inflation was 33.3% and output grew at a rate of 60%.
c.
inflation was 50% and output grew at a rate of 20%.
d.
inflation was 50% and output grew at a rate of 60%.
Table 23-8
A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year.
Year
Price of
Potatoes
Quantity of
Potatoes
Price of Meat
Quantity of
Meat
2011
$2.00
10
$20
6
2012
$2.50
15
$22
7
2013
$3.50
20
$25
8
83. Refer to Table 23-8. In 2012, nominal GDP is
a.
$191.50, and real GDP is $170.
b.
$157, and real GDP is $170.
c.
$191.50, and real GDP is $157.
d.
$170, and real GDP is $227.50.
84. Refer to Table 23-8. In 2012, GDP deflator is
a.
122.
b.
134.
c.
92.
d.
113.
Table 23-9
A country produces only ice cream and pie. Quantities and prices of these goods for the last several years are shown
below. The base year is 2008.
Prices and Quantities
Year
Price of Ice
Cream
Quantity of Ice
Cream
Price of Pie
Quantity of
Pie
2008
$2.50
40
$5.00
20
2009
$3.00
50
$6.00
25
2010
$4.00
40
$6.00
30
85. Refer to Table 23-9. In 2009, this country’s
a.
real GDP was $250, and the GDP deflator was 125.
b.
real GDP was $250, and the GDP deflator was 120.
c.
real GDP was $240, and the GDP deflator was 125.
d.
real GDP was $240, and the GDP deflator was 120.
86. Refer to Table 23-9. This country’s inflation rate from 2009 to 2010 to the nearest tenth was
a.
2.9%
b.
8.8%
c.
13.3%
d.
None of the above is correct.
87. Which of the following is not a correct statement about the growth of real GDP in the U.S. economy?
a.
Real GDP in 2009 was almost four times its 1965 level.
b.
Growth was steady between 1965 and 2009.
c.
Continued growth in real GDP enables the typical American to enjoy greater economic prosperity than his or
her parents and grandparents did.
d.
The output of goods and services produced grew on average about 3 percent per year between 1965 and 2009.
88. A recession has traditionally been defined as a period during which
a.
nominal GDP declines for two consecutive quarters.
b.
nominal GDP declines for four consecutive quarters.
c.
real GDP declines for two consecutive quarters.
d.
real GDP declines for four consecutive quarters.
89. Recessions are not associated with which of the following?
a.
increased bankruptcies
b.
falling profits
c.
falling incomes
d.
falling unemployment
90. A recession is always associated with
a.
the end of a war.
b.
slowly growing real GDP.
c.
rising inflation.
d.
declining real GDP.
91. Much of macroeconomics attempts to explain
a.
changes in the price of oil and gasoline.
b.
long-run growth and short-run fluctuations in real GDP.
c.
changes in the growth rate of state government spending.
d.
changes in the prices and quantities of individual goods and services.
92. Which of the following statements about recessions is true?
a.
An old rule of thumb defining recession is two consecutive quarters of falling nominal GDP.
b.
Recessions occur at regular intervals and last standard amounts of time.
c.
There is no ironclad rule for the declaration of recessions.
d.
Recessions are associated with low unemployment and high income.
