Which of the following statements best describe how economists calculate GDP? a. Economists at the Census bureau collect data from surveys sent to consumers, private firms and government agencies and add them up on a yearly basis. b. Economists at the Bureau of Economic Analysis pull together data on sales, imports, exports, government purchase and investments from various government sources every 3 months. c. Economists at the Bureau of Labor Statistics collect data from surveys sent to consumers, private firms and government agencies and add them up every 3 months. d. Economists at the Congressional Budget Office calculate GDP for a given year by adjusting the previous year’s GDP with inflation. Which statement best describes the difference between Nominal and Real GDP? a. Nominal GDP is Real GDP that has been adjusted to remove the distorting effects of inflation. b. Real GDP is calculated using current market prices, while Nominal GDP is calculated using the average prices of the last 5 years. c. Nominal GDP is calculated using current market prices, while Real GDP is calculated using the prices of the previous year. d. Real GDP is Nominal GDP which has been adjusted to remove the distorting effects of inflation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Which of the following statements best describe how economists calculate GDP?

a. Economists at the Census bureau collect data from surveys sent to consumers, private firms and government agencies and add them up on a yearly basis.

b. Economists at the Bureau of Economic Analysis pull together data on sales, imports, exports, government purchase and investments from various government sources every 3 months.

c. Economists at the Bureau of Labor Statistics collect data from surveys sent to consumers, private firms and government agencies and add them up every 3 months.

d. Economists at the Congressional Budget Office calculate GDP for a given year by adjusting the previous year’s GDP with inflation.

Which statement best describes the difference between Nominal and Real GDP?

a. Nominal GDP is Real GDP that has been adjusted to remove the distorting effects of inflation.

b. Real GDP is calculated using current market prices, while Nominal GDP is calculated using the average prices of the last 5 years.

c. Nominal GDP is calculated using current market prices, while Real GDP is calculated using the prices of the previous year.

d. Real GDP is Nominal GDP which has been adjusted to remove the distorting effects of inflation.

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