Question

I have the following problems:

--21) Suppose France's real GDP grew from $750 billion in 2010 to $821 billion in 2011. What was the growth rate of France's real GDP?

A) 8.6 percent

B) 9.5 percent

C) 9.1 percent

D) 10 percent

--23) Sustained increases in the standard of living depend on

A) decreases in labor productivity.

B) increases in the quantity of labor.

C) increases in aggregate hours.

D) increases in labor productivity

--16) The difference between nominal and real is

A) real is measured in current dollars and nominal is measured in dollars of a given year.

B) nominal is a number stated in dollars and real is stated with an index number.

C) nominal is measured in current dollars and real is measured in dollars of a given year.

D) real is a number stated in dollars and nominal is stated with an index number. D) increases in labor productivity.

Answer 1

Ans 1:

Real GDP Growth Rate = [(821-750)/750]x100 = 9.46% or 9.5% (approximately).

Therefore, correct option is: B) 9.5 percent

Ans 2: D) increases in labor productivity, This is because this shows the amount of product made by a worker in a particular time period.

Ans 3: C) nominal is measured in current dollars and real is measured in dollars of a given year.

Nominal GDP is also called as GDP at current prices

Real GDP is also called as GDP at constant prices