Friday, February 17, 2017

2012 Macro Multiple Choice - GDP

2012 Macro Multiple Choice - GDP



(A) An increase in real per capita gross domestic product

(B) nominal per capita GDP has more to due with inflation increase
(C) Price stability - all can be poor and prices stabile 
(D) A balanced budget - Taxes collected = government expenditures - doesn't really speak to standards of living.
(E) CPI - has to due with inflation,, and an increase might have made people worse off.



Answer - (D)



GDP = C + I + GS + XN

Consumption = $3000
Investment = $700
GS = $1,000
XN = Exports - Imports = 300 - 500 = -200

$3,000 + $700 + $1,000 + 300 - 500 = $4,500

Answer - (A) $4,500