Ap Macro Unit 2 Quiz

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

• Nominal GDP
• Real GDP
• GDP per capita

High levels of GDP per capita indicate...

• Higher levels of happiness 
• Higher standard of living
• Equal levels of wealth 
• Self-sufficient communities

Expectant parents buy supplies for the nursery.  Would this be included in GDP? 

• Yes - Consumer Spending
• Yes - Investment 
• No - Intermediate goods
• No - Non-market activity

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
• Yes - Government Spending
• No - Underground Economy 
• No - Non-market activity 

If the GDP deflator is equal to 105, it means that...

• GDP has decreased 5 percent

• the inflation rate is 5 percent

• GDP has increased 105 percent

• the inflation rate is 105 percent

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity

If CPI goes from 100 to 300 and your salary goes from $100,000 to $200,000, what happened to your purchasing power?

• Increase
• Decrease
• No change

An index that measures the prices of a market basket of goods that typical consumers purchase.

• Consumer Price Index
• Federal Reserve
• Bank
• Deflation

Which year is the base year?
1997 CPI = 95
1998 CPI = 97
1999 CPI = 100
2000 CPI = 104

• 1997
• 1998
• 1999
• 2000

_________ is a decrease in the rate of inflation.

• Hyperinflation

• Disinflation

• Deflation

• Stagflation