Question

The real growth rate is calculated by

-          The BEA adjusting the GDP for inflation

-          The BEA using nominal rates to reflect the GDP

-          The BLS adjusting the GDP per capita for inflation

-          The BLS calculating price level changes and population changes

Productivity growth is usually an indicator of

-          The possibility of inflation

-          Future increases in the unemployment rate

-          The decline in the health and prosperity of the economy

-          The increase in the health and prosperity of the economy

What would NOT be one of the reasons for a much lower real GDP in 1905, compared with 2007?

-          Productive capability in 1905 was lower than in 2007

-          Fewer goods and services were available in 1905 than in 2007

-          On average, there were fewer poor people in 1905 than in 2007

-          Automobiles were rare in 1905, but common in 2007

By 2016, economists had drawn what conclusion about the very low productivity growth that lasted from 2005 to 2015?

-          It was merely a temporary pause in otherwise strong productivity growth

-          Productivity slowed because of government overregulation

-          Productivity slowed because of a decrease in investment

-          Productivity averaged only 1.2 percent during that time

Answer 1

1) The real growth rate is calculated by

Solution: The BEA adjusting the GDP for inflation

Explanation: Real GDP refers to a measurement of economic output that accounts for the effects of deflation or inflation.

　

2) Productivity growth is usually an indicator of

Solution: The possibility of inflation

Explanation: Productivity is usually an indicator of labor efficiency in producing goods and services in the U.S. economy

　

3) What would NOT be one of the reasons for a much lower real GDP in 1905, compared with 2007

Solution: On average, there were fewer poor people in 1905 than in 2007

Explanation: Low productivity; fewer goods and rare automobiles were the main cause for a much lower real GDP in 1905, compared with 2007

　

4) By 2016, economists had drawn what conclusion about the very low productivity growth that lasted from 2005 to 2015?

Solution: It was merely a temporary pause in otherwise strong productivity growth

Explanation: A slowdown in productivity be merely a reflection of the problems in measuring economic activity brought due to new technologies