AP Econ 3Q7W Quiz Circular Flow, Inflation, and CPI

According to the data above, in which year was real gross domestic product (GDP) the largest?

• 1980

• 1990

• 2000

• 2010

• 2015

According to the data above, in which year was nominal gross domestic product (GDP) the largest?

• 1980

• 1990

• 2000

• 2010

• 2015

According to the data above, between which years was there the largest difference in nominal GDP?

• 1980-1990

• 1990-2000

• 2000-2010

• 2010-2015

If the consumer price index increases from 200 to 240 in a one-year period, then the inflation rate is

• 16.67 %

• 20%

• 25%

• 40%

• 140%

Which of the following would most likely benefit from unexpected DEFLATION?

• Lenders

• Borrowers

• Retail shop owners

• Automobile manufacturing firms

Which of the following will most likely result from deflation?

• Increased business profits

• Increased real value of fixed incomes

• Decreased purchasing power of cash

• Decreased real wealth

If nominal GDP doubled and real GDP stayed the same, we can assume that...

• the inflation rate decreased.

• the unemployment rate increased.

• real income increased.

• price level doubled.

Suppose that a country’s nominal GDP was $1,000 in year 1 and $2,000 in year 2. If year 1 is the base year and real GDP in year 2 was $1,000, which of the following is true?

• Prices fell by 50% between year 1 and year 2.

• Prices remained the same between year 1 and year 2.

• More goods and services were produced in year 2 than in year 1.

• Fewer goods and services were produced in year 2 than in year 1.

• Prices doubled between year 1 and year 2.

Which of the following would decrease the United States net exports to South Korea?

• South Korean computer companies sell more computers to the United States.

• South Koreans spend more vacations in the United States.

• United States banks provide more banking services to South Korea.

• United States smartphone companies sell more smartphones to South Korea.

Using the table above, if year 1 is the base year, the consumer price index for year 2 in this economy is

• 57.1

• 66.7

• 100

• 175

• 250