### Quiz: Understanding GDP Measurement**2. True or False?** When we measure GDP, it’s always better to measure aggregate expenditure rather than aggregate production.- A. True- B. False**3. What accounts for the difference in real GDP vs. nominal GDP for the same year?**- A. Month of the year measurement is taken in- B. Which government agency reports the number- C. What price level is used- D. Whether exports exceed imports that year or vice versa**4. Which U.S. federal agency produces GDP data for the U.S.?**- A. BEA- B. CIA- C. FBI- D. FDA**5. Real GDP rose from $3 trillion to $3.1 trillion in one year. What’s the GDP growth rate?**- A. 0.1%- B. 3.2%- C. 3.3%- D. 10%**6. In our model of production for studying the GDP, what does lower-case y stand for?**- A. Productivity parameter- B. Per capita GDP- C. Marginal GDP- D. Per capita capital

Answered: 2. True or False? When we measure GDP,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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### Quiz: Understanding GDP Measurement

**2. True or False?** When we measure GDP, it’s always better to measure aggregate expenditure rather than aggregate production.

- A. True
- B. False

**3. What accounts for the difference in real GDP vs. nominal GDP for the same year?**

- A. Month of the year measurement is taken in
- B. Which government agency reports the number
- C. What price level is used
- D. Whether exports exceed imports that year or vice versa

**4. Which U.S. federal agency produces GDP data for the U.S.?**

- A. BEA
- B. CIA
- C. FBI
- D. FDA

**5. Real GDP rose from $3 trillion to $3.1 trillion in one year. What’s the GDP growth rate?**

- A. 0.1%
- B. 3.2%
- C. 3.3%
- D. 10%

**6. In our model of production for studying the GDP, what does lower-case y stand for?**

- A. Productivity parameter
- B. Per capita GDP
- C. Marginal GDP
- D. Per capita capital

Expert Solution

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Since you have asked multiple question, we will answer first question for you. If you want any specofic question to be solved then please specify question number or post only that question.

Gross Domestic Product (GDP) is the value of final goods and services produced in the economy in the given period.

When the value of GDP is measured at the current price level at is referred as nominal GDP.

When the value of GDP is measured at base year prices it is referred to as the real GDP. Real GDP is adjusted for inflation and hence a better meeasure to comapre the growth of nation.

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