Question

2. If the nominal GDP is $12,000 in 2005 and $15,000 in 2006, and if inflation is 10% between these years, then

a. employment fell between 2005 and 2006.

b. real GDP fell between 2005 and 2006.

c. real GDP rose between 2005 and 2006.

d. the economy experienced no growth between these years.

e. everyone is rich now than they were before.

If a US citizen is employed by a US company in Russia, the income she earns is:

a. part of US GNP and Russian GDP

b. part of US GNP and Russian GNP.

c. part of US GDP and Russi GNP

d. part of US GDP and Russia GDP.

1. If the value of a price index was 125 for 2005 and 75 for 1982, and GDP was 2500 in 2005 compared to 600 in 1982, the value of real 2005 GDP in terms of 1982 prices is:

a. 1500.

b. 1000.

c. 2500.

d. 360.