3. USAEO Macroeconomics

Nominal And Real Gdp — Quiz

Test your understanding of nominal and real gdp with 5 practice questions.

Practice Questions

Question 1

Which of the following best describes the difference between nominal GDP and real GDP?

Question 2

If nominal GDP in a country increased by 10% over a year while the GDP deflator increased by 4%, what is the approximate increase in real GDP?

Question 3

Suppose a country’s nominal GDP in year 1 was $500 billion and in year 2 it rose to $550 billion. If the GDP deflator increased from 100 to 105 over the same period, what is the real GDP in year 2 (using year 1 as the base year)?

Question 4

Which of the following would cause nominal GDP to increase but real GDP to remain unchanged?

Question 5

If a country’s nominal GDP doubles over ten years and the GDP deflator also doubles, what happens to the real GDP over this period?