4. Macroeconomic Foundations

Measuring Gdp — Quiz

Test your understanding of measuring gdp with 5 practice questions.

Practice Questions

Question 1

Which of the following would be considered an investment component of GDP?

Question 2

If the price of goods and services produced in an economy increases, but the quantity produced remains the same, what will happen to nominal GDP and real GDP?

Question 3

Which of the following is a limitation of using GDP as a measure of a country's economic well-being?

Question 4

Consider an economy where only two goods are produced: apples and bananas. In Year 1, $100$ apples are produced at $$1.00$ each, and $50$ bananas are produced at $$2.00$ each. In Year 2, $100$ apples are produced at $$1.20$ each, and $50$ bananas are produced at $$2.50 each. Using Year 1 as the base year, what is the real GDP in Year 2?

Question 5

Which of the following is included in the 'net exports' component of GDP?