Question

Question 24 (1 point)

Which of the following statements is true?

a	Nominal GDP measures the dollar-value of the goods and services produced in the economy during a year, at their current prices.
b	Even if the economy continues to produce the same quantity of goods and services, just because there is inflation (prices are going up) nominal GDP will decrease.
c	The unemployment rate is the percentage of the workforce that is not working but is actively looking for a job.
d	All of the above.
e	Only a) and c)

Question 25 (1 point)

Which of the following statements is true?

a	During recessions unemployment increases, and during expansions, unemployment decreases.
b	Inflation refers to decreases in the overall level of prices.
c	A high level of inflation means that it will cost the typical family more to purchase the same quantity of goods and services.
d	All of the above.
e	Only a) and c)

Question 26 (1 point)

Which of the following statements is true?

a	The inflation rate is the percentual change in the price level.
b	The price level is the average level of prices in the economy.
c	Prior to the Industrial Revolution (around 1600-1840), there was basically no increases in the standard of living around the world.
d	All of the above.
e	Only a) and b)

Answer 1

Q24. Option e

Nominal GDP is the value of goods and services produced in a financial year.

Unemployment rate = no of unemployed total labor force

Q25. Option e

Recession is caused by decrease in demand because of lower level of employment

Inflation leads to reduced purchase power of money, hence more money needs to be spent to purchase same quantity of goods

Q26. Option e

Inflation = % change in price level to the previous year

Price level is decided on the average of prices of basket of goods