AP Nominal GDP VS. REAL GDP

Multiple Choice

What is the misery index at point A?

• 12

• 9

• 10

• 0

Multiple Choice

What is the misery index at point B?

• 12

• 9

• 10

• 0

Multiple Choice

What is the misery index at point C?

• 12

• 9

• 10

• 0

Multiple Choice

At which point did we experience the highest misery index?

• A

• B

• C

Multiple Select

How can we calculate Nominal GDP?

• Value Added Approach

• Expenditure Approach

• Inflation + Unemployment

• Lost/ Gained

Open Ended

Re-explain Nominal GDP

Multiple Choice

Remitopia only makes bracelets. In 2021 they made 100 bracelets and sold each of them for $20. What was their NOMINAL GDP?

• $120

• $1,200

• $200

• $2,000

Open Ended

Re-explain how we can take away the affect of inflation when calculating GDP

Multiple Choice

In Oliverland they produce only airplanes. In 2003 they sold 12 airplanes for $10,000 each. Their nominal GDP for that year was $120,000. In 2013 the sold 12 airplanes for $30,000 each. Their nominal GDP for 2013 was $360,000. Assuming 2003 is the base year, what was Oliverland's REAL GDP for 2013?

• $360,000

• $120,000

• $100,000

• $40,000

​(ALWAYS ASSUME THE EARLIEST YEAR IS THE BASE YEAR)