AP Macro Unit 2 pt 1

Which of the following is a method for calculating GDP?

• Expenditure approach

• Production approach

• Income approach

• All of the above

What does nominal GDP refer to?

• GDP adjusted for inflation

• GDP not adjusted for inflation

• GDP measured with base year prices

• GDP of the previous year

Which of the following best describes real GDP?

• GDP evaluated at current market prices

• GDP adjusted for changes in the price level

• GDP including international transactions

• GDP excluding non-market transactions

What is GDP per capita?

• Total GDP of a country

• GDP divided by the adult population

• GDP divided by the total population

• GDP multiplied by the total population

Which factor does NOT directly affect GDP?

• Consumer spending

• Government spending

• Net exports

• Stock market prices

How is the expenditure approach to calculating GDP summed up?

• C + I + G + (X - M)

• C + I + G + (M - X)

• C + I + G + NX

• C + I + NX + (X - M)

What does the 'I' stand for in the expenditure approach to GDP?

• Interest

• International trade

• Investment

• Insurance

Which of the following is considered when calculating GDP using the income approach?

• Wages and salaries

• Rent

• Interest

• All of the above

What is the main difference between nominal and real GDP?

• Nominal GDP includes taxes, real GDP does not

• Real GDP includes taxes, nominal GDP does not

• Nominal GDP is adjusted for inflation, real GDP is not

• Real GDP is adjusted for inflation, nominal GDP is not

Which of the following would increase GDP?

• A decrease in domestic consumption

• An increase in exports

• An increase in imports

• A decrease in government spending