Q1. Year Price of Burgers Quantity of Burgers Price of Magazines Quantity of Magazines

2016 $4.00 100 $2.00 180

2017 $5.00 120 $2.50 200

2018 $6.00 150 $3.50 200

Refer to the table above. Using 2016 as the base year, what can we conclude for 2017?

A) Real GDP is $880, and the GDP deflator is under 100.

B) Real GDP is $1100, and the GDP deflator is above 100

C) Real GDP is $880, and the GDP deflator is above 100

D) Real GDP is $950, and the GDP deflator is under 100.

Q2

A nation's capital stock will decline when:

A) gross investment exceeds net investment

B) net investment is positive, but less than gross investment

C) gross investment exceeds depreciation

D) depreciation exceeds gross investment

E) gross investment is positive, but less than net investment