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AP Macroeconomics 2.6 Real V Nominal Gdp Questions

Distinguish nominal and real GDP, calculate real GDP and the GDP deflator, and use base-year prices to compare output over time.

Syllabus
Effective Fall 2022
Course
AP Macroeconomics

Exam points

  • distinguish current-price nominal GDP from constant-price real GDP and explain equality in the base year
  • calculate real GDP with base-year prices or by deflating nominal GDP
  • calculate the GDP deflator as nominal GDP divided by real GDP times 100
  • solve and compare nominal GDP, real GDP and the GDP deflator from shared data
  • separate changes in real production from changes in the overall price level

Covered syllabus points

MEA-1.I—Define nominal GDP and real GDPMEA-1.J—Calculate real GDP and the GDP deflator

Question 1

[Maximum number: 2]

The table provided shows the quantities and unit prices of shirts, bread, and pants, the only three goods produced in the country of Middleland in 2021 and 2022. Assume that 2021 was the base year.

Table for Question 1 — AP Macroeconomics

Question (a)

(a)

Was the real GDP in 2021 in Middleland greater than, less than, or equal to the nominal GDP in 2021? Explain.

[ 1 ]

Question (b)

(b)

Calculate the real GDP in Middleland in 2022. Show your work.

[ 1 ]
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