Nominal vs Real GDP

Nominal vs Real GDP

Recap

GDP

Multiple Choice

Which is a final product in a bakery?

• Cakes

• Eggs

• Flour

• Sugar

Multiple Choice

Cars, TVs, computers belong in which part of the GDP formula?

GDP = C+I+G+(X-M)

• Consumption Expenditures

• Investment Expenditures

• Government Expenditures

• Net Imports

Multiple Choice

An airline buying a plane belong in which part of the GDP formula?

GDP = C+I+G+(X-M)

• Consumption Expenditures

• Investment Expenditures

• Government Expenditures

• Net Imports

Multiple Choice

Bridges and roads belong in which part of the GDP formula?

GDP = C+I+G+(X-M)

• Consumption Expenditures

• Government Expenditures

• Investment Expenditures

• Net Imports

Multiple Choice

What does X represent in calculating net imports?

X-M

• None of the above

• Imports

• Exports

• Expenditures

Multiple Choice

The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry. Is this included in GDP?

• Yes - Consumer spending

• No - Underground Economy

• Yes - Government Spending

• No - Non-market activity

Multiple Select

Aly spends $400 on used textbooks at the beginning of the semester in college. Is this included in the GDP?

• Yes

• No

Multiple Choice

Mark always changes his own oil. Is this effort counted in GDP?

• No - Black Market

• No - Non-market Activity

• No - Unreported Income

• No - Purely financial transaction

Multiple Choice

The Income Approach of Calculating GDP includes...

• All spending on final products in the year.

• All Income made from selling all final goods.

• All costs on all products.

• The amount of people involved in production.

Multiple Choice

What is GDP?

• Gross Domestic Product

• Gross Domestic Purchase

• Gross Dependent Puchases

Multiple Select

GDP measures the:

• Total market value of intermediate goods and services produced by the citizens of a country in a given year.

• Change in total employment at Jamaican owned firms over the course of a given year.

• Total market value of all final goods and services produced in an economy in a given year.

• Change in production levels at Jamaican owned firms measured quarterly.

Lesson Activity

Multiple Select

What type of GDP is calculated with the current year's prices?

• Real GDP

• Nominal GDP

Multiple Choice

Nominal GDP is not a good measure of economic output. Why?

• Nominal GDP does not adjust for price changes over time.

• Nominal GDP is not able to be used to make international comparisons.

• Nominal GDP does not capture true economic activity.