The main difference between Real GDP and nominal GDP is that real GDP measures u

Question

The main difference between Real GDP and nominal GDP is that real GDP measures unemployment, nominal GDP also measures unemployment but for future True False A consumer price index is a measure of How much people are willing to spend on various commodities Cost of a market basket of goods and services in a given year in relation to the cost of the same market basket of goods and services in the base year How people actually spend their income What people pay for their housing If we have data on Consumer Price Index and per capita income for the past 20 years we wilt he able to tell if the economy had experienced any inflation or not True False A country can achieve a desirable growth rate if it has economic that rewards innovation True False It is necessary for any country to experience long-term economic growth that there is a la v. fraction of citizen's income is set aside as savings True False A rule of 70 can be used to calculate The time it requires a country to double is GDP per capita The growth rate it takes to double its per capita income How long a country must wait to double Its population growth rate None of the above

Explanation / Answer

1.

False

(Reason: Nominal GDP does not take into account inflation, while Real GDP adjusts for inflation)

2.

(b) Cost of a market basket of goods and services in a given year in relation to cost of same market basket of goods and services in the base year

(Reason: It is used to calculate inflation by taking into account changes in cost of basket of goods)

3.

True

(Reason: CPI is used to calculate inflation by taking into account changes in cost of basket of goods)

4.

True

5.

True

6.

(a) The time it requires a country to double its GDP per capita

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