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Real income in year X is equal to:
a. year X nominal income x 100.
    year X real GDP
b. year X nominal income x 100.
    year X real output
c. year X nominal income
    CPI/100
d. year X nominal income x CPI.

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Sonal Bahl
Sonal BahlLv10
28 Jan 2021

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Related questions

Inflation affects creditors and debtors. Suppose the Canadiandebtors borrowed $100 from the Canadian creditors on December 31,1992 and promised to pay back $105 on December 31, 1993. This isequivalent to paying back a nominal interest rate of 5%

CPI For 1991: 95.12, CPI 1992: 100, CPI 1993:.117.79


1) Find the real interest rate, which is defined as real interestrate = nominal interest rate – inflation rate.

The CPI and he GDP Price Index (GDP deflator) are both...

well suited to indexing wages, household income, or the value of household assets.

well suited to indexing macroeconomic aggregates like national income, the trade deficit, or nominal GDP.

measures that use a baseline of 100 (in the base year).

weighted averages of the prices of a broad array of output.

1.

Given nominal GDP of $4.2 trillion and a GDP Deflator is 120, we can conclude that real GDP is equal to:

A. $3 Trillion.
B. $3.5 Trillion.
C. $3.9 Trillion.
D. $5.2 Trillion.

2.

Say real GDP is $9.2 trillion. If personal consumption is $5.1 trillion, investment is 1.8 trillion, and government purchases are 2.5 trillion, then:

A. personal consumption is less than exports.
B. exports exceed imports by $0.2 trillion.
C. imports are equal to exports.
D. imports exceed exports by $0.2 trillion.

3. If nominal output is $4.2 trillion and the GDP Deflator is 5 percent higher than its base year, then real output is:

4. If the CPI in 1979 was 72.6 and it was 82.4 in 1980, then the inflation rate from 1979 to 1980 was?

5. Housing comprises roughly 40% of the market basket in the CPI. If the price of housing rises 15% in one year while the other components in the CPI rise by 10%, the CPI will rise by 12%. True or False?

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