True&False Microeconomics MIDTERM

An increase in nominal GDP of Vietnam necessarily implies that the Vietnam is producing a larger output of goods and services?

• True
• False

If nominal GDP is 10,000 and real GDP is 8,000 the GDP deflator is 125?

• True
• False

New home construction is included in the consumption component of GDP?

• True
• False

The government component of GDP includes salaries paid to Army generals but not Social Security benefits to the elderly?

• True
• False

GDP is perfect measure of output of each economy?

• True
• False

If nominal GDP in 2000 exceeds nominal GDP in 1999, real output must have risen?

• True
• False

If the lumber man sells $1000 of lumber to a carpenter and the carpenter uses the lumber to build a garage which he sells for $5000, the contribution to GDP is $6000?

• True
• False

A new car produced in 1999, but first sold in 2000, should be counted in 2000 GDP because that is when it was first sold as a final good?

• True
• False

Between 1929 and 1933 GDP measured in current prices fell from $96 billion to $48 billion. We can conclude that the quantity of goods and services produced by the economy declines 100%?

• True
• False

Suppose that the CPI today is 120 and that it was 80 five years ago. Then in today's price, a pen that cost $1 five years ago now costs $1.50?

• True
• False