ECON 205 - Final Exam Questions and Answers Level A+ 2023
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How do you calculate GDP? - -GDP = C + I + G + NX (consumption + investment + government expenditure + net exports) -What is GDP (gross domestic product)? - -The market value of final goods and... services -How can you measure real GDP? - -In base year prices and nominal GDP is in current prices -In 1989, the CPI was 124.0. In 1990, it was 130.7. What was the rate of inflation over this period? - -5.4 percent ((Year 2 CPI - Year 1 CPI)/Year 1 CPI) * 100 -The "basket" on which the CPI is based is composed of: - -Typical consumer goods -If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected: a) borrowers will gain at the expense of lenders b) lenders will gain at the expense of borrowers c) neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract - -b) lenders will gain at the expense of borrowers -The amount of money today needed to produce a particular sum in the future, given prevailing interest rates, is known as: [Show More]
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