Answer to Question #90513 in Macroeconomics for Sung Eun Seok

Question

1. Which of the following question is an illustration of a macroeconomic question?
A. Is the quantity of wine purchased in one year dependent upon the price of wine?
B. Is the level of employment in the economy sensitive to the quantity of consumer spending?
C. Is a consumer boycott an effective means of reducing product prices?
D. Are oil companies engaging in a rip-off of the consumer by charging exorbitantly high prices
for gasoline?

2. Which of the following is NOT part of the definition of GDP?
A. GDP includes intermediate goods
B. GDP uses the market value
C. GDP includes production within a country
D. GDP is measured over a given time period

3. Nominal GDP differs from real GDP because:
A. Nominal GDP is based on constant prices
B. Real GDP is based on current prices
C. Nominal GDP is adjusted for changes in the price level
D. Real GDP is adjusted for the changes in the price level

Answer 1

1 - B

2 - A

3 - D