2. Consider a bakery that buys flour to bake cakes. Which of the following statements is true? a. The value of the cake and the flour used to make the cake are counted as part of GDP. b. Only the value of the cake is counted in GDP. c. Only the value of the flour used to make the cake is counted in GDP. d. Only the difference between the value of the cake and the value of the flour is counted in GDP. 3. To best determine whether an economy's output is growing or shrinking, one must keep track of changes in: a. nominal GDP. b. the growth rate of nominal GDP. c. the general price level. d. real GDP. 4. Suppose nominal GDP in a country rose from the second quarter to the third quarter of 2008. Real GDP fell in the third quarter of 2008. What could have accounted for this? a. The economy's price level declined over the second and third quarters of 2008. b. The general price level in the economy in the third quarter is higher than that in the second quarter of 2008. c. Production of goods must have increased by a greater rate than the increase in the economy's price level. d. The population of the country must have increased over the last quarter