Title: QUIZ: Real vs. Nominal GDP -- GDP Video Explainers
Course: Recommended Resources for AP Macro from FRE > Section: Unit 2: Economic Indicators and the Business Cycle

Q: An increase in GDP from $20 million to $22 million might not mean a 10% increase in the production of the economy. Why?
- Some of that could be imports
- Prices have likely increased
- Products have improved quality meaning they cost more
- The population likely increased
A: Prices have likely increased

Q: If you want to calculate the change in output, you must__________.
- divide by the increase in population
- multiply by the change in production
- hold prices constant for each year
- hold production and population constant
A: hold prices constant for each year

Q: What is the term for GDP being adjusted for inflation and measured in constant prices?
- Nominal
- Gross
- Net
- Real
A: Real

Q: What is the nominal GDP of an economy that produces 100 units of only one type of good at a price of $10?
- $10,000
- $1,000
- $100
- $10
A: $1,000

Q: In year 1, an economy  produces 100 units of only one type of good at a price of $10. In year 2, the economy produces the same number of units of that good, but prices increase to $15. How much has the real GDP increased?
- $500
- $5,000
- $0
- $100
A: $0