1. From one year to the next nominal GDP rises and the GDP deflator falls.

A. Real GDP must have fallen more than nominal GDP rose.

B. Real GDP must have risen more than nominal GDP did.

C. Real GDP must have risen less than nominal GDP did..

D. Real GDP must have fallen less than nominal GDP rose.

2. Which of the following exclusions from GDP suggests that GDP is underestimating our material well-being?

A. The decline in leisure of salaried workers.

B. The environmental impacts of congestion and pollution

C. The increased stress and health problems caused by the modern pressures and demands of the work place.

D. The unreported earnings of people who work off the books

3. Full employment is typically associated with:

A. relatively high unemployment.

B. high unemployment but low inflation.

C. low unemployment but high inflation.

D. moderate levels of both unemployment and inflation.