Consider the Following Data That Gives the Quantity Produced and Unit

question 122

Multiple Choice

Consider the following data that gives the quantity produced and unit price for three different goodsacross two different years to answer the next questions. Assume that the base year is 2012
$$\begin{array} { l l c l l } \hline \text { Good } & \text { 2012 Price } & \text { 2012 Quantity } & \text { 2013 Price } & \text { 2013 Quantity } \\\hline \text { A } & \$ 2.00 & 500 & \$ 2.50 & 600 \\\text { B } & \$ 4.00 & 1,000 & \$ 5.00 & 900 \\\text { C } & \$ 2.00 & 200 & \$ 1.00 & 300 \\\hline\end{array}$$

-What was the gross domestic product GDP) deflator in 2012?

• A) 100
• B) 108
• C) 103 \(\begin{array} { l l l } \text { ANS: A } & \text { DIF: Difficult } & \text { REF: Real GDP: Adjusting GDP for Price Changes } \\ \text { OBJ: } 6.3 & \text { MSC: Analyzing } & \end{array}\)
• What was the gross domestic product (GDP) deflator in 2013 ?
• a. 116.67\(\quad\)d. 119.44
• b. 108.57\(\quad\)c. 100
• e. 102.38
• \(\begin{array} { l l l } \text { ANS: A } & \text { DIF: Difficult } & \text { REF: Real GDP: Adjusting GDP for Price Changes } \\ \text { OBJ: } 6.3 & \text { MSC: Analyzing } & \end{array}\)
• D) 109
• E) 106

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Definitions:

Net Exports

The net amount obtained by subtracting a nation's total imports from its total exports.

Trade Balance

The financial discrepancy between exports and imports in a country's trade of goods and services.

Net Capital Outflow

Refers to the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners. It's a measure of the international financial flow from a country.

Foreign Assets

Investments or interests in property, businesses, and financial products located in countries other than the investor's home country.