Janet Calculated the GDP Growth Rates for France Between 2012

question 131

Multiple Choice

Janet calculated the GDP growth rates for France between 2012 and 2013.Using 2012 prices for both years,GDP increased 5 percent.Using 2013 prices for both years,GDP increased 1 percent.Hence the chained-price method will calculate that between these years,real GDP increased by

• A)1 percent.
• B)3 percent.
• C)5 percent.
• D)6 percent.
• E)4 percent.

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Definitions:

Aggregate Supply Curve

A graphical representation that shows the total quantity of goods and services producers are willing to supply at different price levels in an economy.

Consumer Price Index

An index that looks at the weighted average prices of a collection of consumer products and services, like food, transportation, and healthcare, to gauge inflation.

Price Level

An overall average price for the complete array of goods and services in the economy.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.