Use information in the table below to answer questions 1 through 25: Year Output
ID: 1103958 • Letter: U
Question
Use information in the table below to answer questions 1 through 25:
Year
Output
Prices (in Dollars)
Good A
Good B
Good C
Good A
Good B
Good C
2000
1
2
8
1
2
3
2001
2
3
7
2
2
3
2002
2
3
6
3
3
3
2003
3
3
5
3
3
4
Nominal GDP in 2000 was
a. 28 b. 29 c. 30 d. 32 e. 34
Nominal GDP in 2001 was
a. 28 b. 29 c. 30 d. 31 e. 34
Nominal GDP in 2002 was
a. 28 b. 29 c. 33 d. 34 e. 36
Nominal GDP in 2003 was
a. 33 b. 38 c. 40 d. 42 e. 44
If the consumption basket contains one unit of each good, the price of the basket in 2000 was ____ dollars.
a. 6 b. 8 c. 10 d. 12 e. 14
If the consumption basket contains one unit of each good, the price of the basket in 2001 was ____ dollars.
a. 3 b. 4 c. 5 d. 7 e. 8
If the consumption basket contains one unit of each good, the price of the basket in 2002 was ____ dollars.
a. 5 b. 8 c. 9 d. 12 e. 14
If the consumption basket contains one unit of each good, the price of the basket in 2003 was ____ dollars.
a. 6 b. 7 c. 8 d. 9 e. 10
Taking 2002 as the base year (2002 = 100), the consumer price index in 2000 was
a. 33.34 b. 55.56 c. 66.67 d. 77.78 e. 100.00
Taking 2002 as the base year (2002 = 100), the consumer price index in 2001 was
a. 33.34 b. 55.56 c. 66.67 d. 77.78 e. 100.00
Taking 2002 as the base year (2002 = 100), the consumer price index in 2002 was
a. 33.34 b. 55.56 c. 66.67 d. 77.78 e. 100.00
Taking 2002 as the base year (2002 = 100), the consumer price index in 2003 was
a. 100.00 b. 111.11 c. 121.21 d. 132.23 e. 143.34
Taking 2002 as the base year, real GDP in 2000 was
a. 32 b. 33 c. 34 d. 35 e. 36
Taking 2002 as the base year, real GDP in 2001 was
a. 32 b. 33 c. 34 d. 35 e. 36
Taking 2002 as the base year, real GDP in 2002 was
a. 32 b. 33 c. 34 d. 35 e. 36
Taking 2002 as the base year, real GDP in 2003 was
a. 32 b. 33 c. 34 d. 35 e. 36
Real GDP grew in 2001 at the rate of
a. –9.09% b. -8.33% c. 0% d. 8.33% e. 9.09%
Real GDP grew in 2002 at the rate of
a. –9.09% b. -8.33% c. 0% d. 8.33% e. 9.09%
Real GDP grew in 2003 at the rate of
a. –9.09% b. -8.33% c. 0% d. 8.33% e. 9.09%
In 2001 the economy went through a ________
a. Expansion b. Recession c. Deficit d. a and c e. a and b
In 2002 the economy went through a ________
a. Expansion b. Recession c. Deficit d. a and c e. a and b
Inflation rate in 2001 was
a. -11.11% b. 11.11% c. 16.67% d. 28.57% e. 37.2%
Inflation rate in 2002 was
a. -11.11% b. 11.11% c. 16.67% d. 28.57% e. 37.2%
Inflation rate in 2003 was
a. -11.11% b. 11.11% c. 16.67% d. 28.57% e. 37.2%
Between 2001 and 2003 the economy experienced ________
a. Deflation b. Inflation c. Appreciation d. a and b e. Depreciation
Year
Output
Prices (in Dollars)
Good A
Good B
Good C
Good A
Good B
Good C
2000
1
2
8
1
2
3
2001
2
3
7
2
2
3
2002
2
3
6
3
3
3
2003
3
3
5
3
3
4
Explanation / Answer
Nominal GDP=sum of[Quantity in the current year*Price in the current year].
1 Nominal GDP year in 2000=Pa*Qa+Pb*Qb+Pc*Qc
Nominal GDP=1*1+2*2+3*8=29
2.Nominal GDP year 2001=Pa*Qa+Pb*Qb+Pc*Qc
Nominal GDP=2*2+2*3+3*7=31
3.Nominal GDP in 2002=Pa*Qa+Pb*Qb+Pc*Qc
Nominal GDP in 2002=3*2+3*3+3*6=33
4.Nominal GDP in 2003=Pa*Qa+Pb*Qb+Pc*Qc
Nominal GDP in 2003=3*3+3*3+4*5=38
Please note-According to the answering guidelines,only the first four parts of a question which has multiple subparts has to be answered.
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