Chapter (6.3) Flashcards
1
Q
A measure of production that does not correct for inflation is:
nominal GDP
the GDP price deflator
real GDP
the CPI
value added
A
nominal GDP
2
Q
A rise in nominal GDP indicates that output has increased.
true
false
A
false
3
Q
Nominal GDP always grows faster than real GDP.
true
false
A
false
4
Q
The CPI is a measure of
the price of raw materials and intermediate goods.
the price of all domestically produced goods and services.
the price of all goods and services included in GDP.
the price of final goods sold by producers.
the price of consumer goods and services.
A
the price of consumer goods and services.
5
Q
The GDP deflator can be viewed as a measure of
the growth rate of the economy.
All of the above are correct.
nominal GDP.
the price level.
real GDP.
A
the price level.
