3. Economic Indicators and the Business Cycle

Real Vs(dot) Nominal Gdp — Quiz

Test your understanding of real vs(dot) nominal gdp with 5 practice questions.

Practice Questions

Question 1

What is the main difference between nominal GDP and real GDP?

Question 2

Why is real GDP a better measure of changes in output over time than nominal GDP?

Question 3

If an economy produces the same amount of goods and services this year as last year, but prices rise, what happens to nominal GDP?

Question 4

Which GDP measure is adjusted for inflation?

Question 5

A country produces $100$ units of output in one year and $110$ units in the next year, with prices unchanged. What happens to real GDP?