Economics of Money, Banking and Financial Markets 12th edition by Frederic Mishkin Test bank
B) the GDP deflator.
C) nominal GDP.
D) the index of leading indicators.
Answer: C
Ques Status: Previous Edition
AACSB: Application of Knowledge
6) Nominal GDP is output measured in ________ prices while real GDP is output measured in ________ prices.
A) current; current
B) current; fixed
C) fixed; fixed
D) fixed; current
Answer: B
Ques Status: Previous Edition
AACSB: Application of Knowledge
7) GDP measured with constant prices is referred to as
A) real GDP.
B) nominal GDP.
C) the GDP deflator.
D) industrial production.
Answer: A
Ques Status: Previous Edition
AACSB: Application of Knowledge
8) If your nominal income in 2014 was $50,000, and prices doubled between 2014 and 2017, to have the same real income, your nominal income in 2017 must be
A) $50,000.
B) $75,000.
C) $90,000.
D) $100,000.
Answer: D
Ques Status: Previous Edition
AACSB: Analytical Thinking
9) If your nominal income in 2014 is $50,000, and prices increase by 50% between 2014 and 2017, then to have the same real income, your nominal income in 2017 must be
A) $50,000.
B) $75,000.
C) $100,000.
D) $150,000.
Answer: B
Ques Status: Previous Edition
AACSB: Analytical Thinking
10) To convert a nominal GDP to a real GDP, you would use
A) the PCE deflator.
B) the CPI measure.
C) the GDP deflator.
D) the PPI measure.
Answer: C
Ques Status: Previous Edition
AACSB: Application of Knowledge
11) If nominal GDP in 2001 is $9 trillion, and 2001 real GDP in 1996 prices is $6 trillion, the GDP deflator price index is
A) 7.
B) 100.
C) 150.
D) 200.
Answer: C
Ques Status: Previous Edition
AACSB: Analytical Thinking
12) When prices are measured in terms of fixed (base-year) prices they are called ________ prices.
A) nominal
B) real
C) inflated
D) aggregate
Answer: B
Ques Status: Previous Edition
AACSB: Application of Knowledge
13) The measure of the aggregate price level that is most frequently reported in the media is the
A) GDP deflator.
B) producer price index.
C) consumer price index.
D) household price index.
Answer: C
Ques Status: Previous Edition
AACSB: Application of Knowledge
14) The measure of the aggregate price level that is frequently the focus of Federal Reserve officials is the
A) consumer price index.
B) producer price index.
C) GDP deflator.
D) PCE deflator.
Answer: D
Ques Status: Previous Edition
AACSB: Application of Knowledge
15) To calculate the growth rate of a variable, you will
A) calculate the percentage change from one time period to the next.
B) calculate the difference between the two variables.
C) add the ending value to the beginning value.
D) divide the increase by the number of time periods.
Answer: A