10) The GDP deflator is designed to adjust nominal GDP for changes in the unemployment rate. b. а. for changes in prices. for problems that arise because of externalities. d. с. for changes in interest rates. 11) The typical bundle of goods and services on which the GDP deflator is based is narrower than the one used to calculate the CPI. b. а. is updated once every decade. is the same as the one used to calculate the CPI. d. с. is updated every year. 12) Assume that between 1995 and 2005, nominal GDP increased from $7 trillion to $12 trillion and that the price index rose from 100 to 133.3. Which of the following expresses GDP for 2005 in terms of 1995 prices? $7.5 trillion b. а. $9.0 trillion $9.5 trillion с. d. $16.0 trillion

10) The GDP deflator is designed to adjust nominal GDP for changes in the unemployment rate. b. а. for changes in prices. for problems that arise because of externalities. d. с. for changes in interest rates. 11) The typical bundle of goods and services on which the GDP deflator is based is narrower than the one used to calculate the CPI. b. а. is updated once every decade. is the same as the one used to calculate the CPI. d. с. is updated every year. 12) Assume that between 1995 and 2005, nominal GDP increased from $7 trillion to $12 trillion and that the price index rose from 100 to 133.3. Which of the following expresses GDP for 2005 in terms of 1995 prices? $7.5 trillion b. а. $9.0 trillion $9.5 trillion с. d. $16.0 trillion

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 19P

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Question

100%

10) The GDP deflator is designed to adjust nominal GDP
for changes in the unemployment rate.
b.
а.
for changes in prices.
for problems that arise because of externalities.
d.
с.
for changes in interest rates.
11) The typical bundle of goods and services on which the GDP deflator is based
is narrower than the one used to calculate the CPI.
b.
а.
is updated once every decade.
is the same as the one used to calculate the CPI.
d.
с.
is updated every year.
12) Assume that between 1995 and 2005, nominal GDP increased from $7 trillion to $12 trillion
and that the price index rose from 100 to 133.3. Which of the following expresses GDP for
2005 in terms of 1995 prices?
$7.5 trillion
$9.0 trillion
$9.5 trillion
а.
b.
с.
d. $16.0 trillion

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