General Awareness: Macroeconomics Quiz

1. Diffrence between Real and Nominal GDP is

A. measured by excluding some of the sectors
B. that real GDP is always smaller than Nominal GDP
C. Change in price level from base year to current year
D. None of the above.

The correct answer is C. Change in price level from base year to current year

2. GDP Deflator is used to

A. Calculate Real GDP from Nominal GDP
B. Measure the changes in Real GDP
C. Both of the above
D. None of the above

The correct answer is A. Calculate Real GDP from Nominal GDP

3. GDP is  market value of all the final goods

A. Produced domestically
B. Produced by domestic factors of production
C. Produced by all factors of production
D. All of the above

The correct answer is A. Produced domestically

4. What is the alternative name for Consumer Price Index (CPI)?

A Paasche Index
B Mundell Index
C Keynes Index
D Laspeyres Index

The correct answer is D. Laspeyres Index

5. If an economy uses a floating exchange rate system then what will happen to GDP if the government decided to use expansionary fiscal policy? (Assuming capital mobility is perfect)

A Increases
B Nobody knows
C Decreases
D No change

The correct answer is D. No change

6. In what year was the WTO (World Trade Organisation) created?

A 1995
B 1994
C 1993
D 1992

The correct answer is A. 1995