1. Between 2021 and 2022, real GDP increases but nominal GDP decreases. Which of the following may be true?

Group of answer choices

A. More final goods and services are produced.

B. Prices on average are rising at a slower rate than the decline in the quantity of final goods and services produced.

C. Production of final goods and services is decreasing at a faster rate than prices are falling.

D. Prices on average are rising.

E. This is impossible. Nominal GDP can never decrease.

2.Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars.

Year	Nominal GDP	Real GDP	GDP Deflator
2009	________	$480	100
2010	$550	________	110
2011	$600	$520	________
2012	________	$600	120

What is the value of real gross domestic product (GDP) in 2010?

Group of answer choices

A. $ 500 million

B. $ 605 million

C. $ 650 million

D. $ 700 million

E. $750 million

3. GDP of country A increases by 20% annually. Yet the people of country A work more than 13 hours a day. This is related to which shortcoming of GDP.

Group of answer choices

A. GDP cannot record the activities of the underground economy.

B. GDP does not reflect the environmental quality

C. GDP does not factor in leisure

D. GDP does not measure happiness

E. GDP cannot measure the economic growth of a country.

4. In 2021, you bought Amazon stock worth $1,000 and you sold it for $2,000. You paid a broker to sell the stock for you. The broker charged you $100. How much do the above activities contribute to the GDP of 2021? Answer: The contribution to the GDP of 2021 = $___________

5. In 2021, you won a lottery of $30,000. You spent $20,000 to buy a new car made in 2021. How much do the above activities contribute to the GDP of 2021? Answer: The contribution to the GDP of 2021 = $___________

6. You bought a popular video game in 2020 for $75 and sold it to a store in 2021 for $30. How much do the above activities contribute to the GDP of 2021? Answer: The contribution to the GDP of 2021 = $___________

7. In 2021, You received from your mom $500 as a gift. You deposited all the money to a bank account. How much do the above activities contribute to the GDP of 2021? Answer: The contribution to the GDP of 2021 = $___________

Consider an economy that only produces 3 goods: A, B, and C. The following table shows the prices and the quantities of the goods in different years.

2012 is the base year.

Use the given information to answer questions 8- 12.

Good	2012 price	2012 quantity	2013 price	2013 quantity	2014 price	2014 quantity
A	$2.5	90	$3	100	$4	120
B	$3.0	100	$3.5	110	$5	125
C	$4	110	$4.5	125	$6	130

8. What is the price level of 2012?

9.Calculate the nominal GDP of 2014. Answer: The nominal GDP of 2014 = $____________

10. Calculate the real GDP of 2014. Answer: The real GDP of 2014 = $____________

11. Calculate the price level of 2014. (Round your answer to the nearest first decimal place.)

12. Based on the above information, which of the following statements is incorrect?

Group of answer choices

A. Nominal GDP rises between 2013 and 2014.

B. Real GDP rises between 2013 and 2014.

C. Price level decreases between 2013 and 2014.