Module 11: Interpreting Real Gross Domestic Product

What are the three different ways to calculate the GDP?

How do you calculate the GDP following the expenditure approach?

If the price level in the economy and nominal wages both doubled, then real wages would:

• increase by 50%.

• decrease by 20%.

• decrease by 50%.

• remain unchanged.

Use this table to answer the following question. Considering Year 1 as the base year, real GDP in Year 2 was:

• $47,000.

• $69,000.

• $72,000.

• $114,000.

Real GDP is nominal GDP adjusted for:

• double counting.

• changes in prices.

• population.

• imports.