Question

Q1) If nominal GDP increases, then real GDP. a. Must decrease b. Must increase c. Must not change d. Could increase, decrease or not change . . . Q2) The Bureau of Labor Statistics counts Michael as being un employed if he a Had a job last month but not this month b. Wants a job and looked for a job last year but has now stopped looking c. Does not have a job because the U.s factory where he worked cannot compete with cheap Chinese imports d. Wants a job and is willng to take a job but after searching last week cannot find the job. e. Q3) for the CPI provide an accurate measure of the prices paid by consumers, it is necessary to Assing equal weights to all goods and services included in the market basket surveyed so that nothing is over weight Have a market basket which corresponding to what households actually purchase Change the market basket each month to reflect the changes that consumers make Make certain that the incomes of the consumers surveyed do not change because such a change would affect the market basket of the goods and services they buy a. b. c. d.

Answer 1

1. Option D

Explanation: Real GDP can increase, decrease or remain the same depending on the change in price level.

2. Option D

Explanation: According to BLS, one is unemployed when one does not have a job and has actively looked for a job in the last four weeks.

3. B

Explanation: The market basket needs to correspond to actual purchase habits of consumers.