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When the total value of final goods and services is calculated using current prices, the
resulting measure is referred to as ____.
A) real GDP
B) the GDP deflator
C) nominal GDP
D) the index of leading indicators
Answer: C
Diff: 1 Type: MC Page Ref: 18
Skill: Recall
Objective List: Appendix: Defining Aggregate Output, Income, the Price Level, and the
Inflation Rate
Nominal GDP is output measured in ____ prices while real GDP is output measured in
____ prices.
A) current; current
B) current; fixed
C) fixed; fixed
D) fixed; current
Answer: B
Diff: 1 Type: MC Page Ref: 18
Skill: Recall
Objective List: Appendix: Defining Aggregate Output, Income, the Price Level, and the
Inflation Rate
GDP measured with constant prices is referred to as ____.
A) real GDP
B) nominal GDP
C) the GDP deflator
D) industrial production
Answer: A
Diff: 1 Type: MC Page Ref: 18
Skill: Recall
Objective List: Appendix: Defining Aggregate Output, Income, the Price Level, and the
Inflation Rate
If your nominal income in 2013 was $30,000, and prices doubled between 2002 and 2013, to
have the same real income, your nominal income in 2002 must be ____.
A) $10,000
B) $15,000
C) $20,000
D) $100,000
Answer: B
Diff: 2 Type: MC Page Ref: 19
Skill: Applied
Objective List: Appendix: Defining Aggregate Output, Income, the Price Level, and the
Inflation Rate