11.3/4 Real GDP and Unemployment

What is the percentage change in price if a car's price increases from $20,000 in 2012 to $21,500 in 2013?

• A) 7.5%

• B) 8.5%

• C) 6.5%

• D) 7.0%

What does GDP stand for in economic terms?

• General Demand Product

• Gross Domestic Product

• Governmental Domestic Policy

• Generalized Data Protocol

How is GDP calculated?

• GDP = Current Prices + Current Quantity of Goods Produced

• GDP = Current Prices / Current Quantity of Goods Produced

• GDP = Current Prices x Current Quantity of Goods Produced

• GDP = Current Prices - Current Quantity of Goods Produced

What does Real GDP use to measure the economy?

• Future year prices

• Past year prices

• Current year prices

• Average year prices

What could cause an increase in GDP?

• A decrease in current prices

• An increase in the base year

• An increase in current prices or quantity of goods produced

• A decrease in quantity of goods produced

What term is used to describe the year that economists use to compute real GDP?

• Current year

• Past year

• Base year

• Fiscal year

What is the primary focus of economists when considering the Consumer Price Index (CPI)?

• Changes in a single price

• Overall changes in price levels

• The quantity of goods produced

• The types of goods produced

How is a price index generally defined?

• A measure of economic growth

• A measure of the average level of prices

• A measure of the total quantity of goods

• A measure of changes in GDP

What does GDP stand for in the context of price indexes?

• Goods Delivered Price

• Gross Domestic Product

• General Demand Price

• Government Department of Pricing

What is the formula for calculating real GDP according to the base year?