L501 - GDP, Inflation, TVM

What is inflation?

• rise in all prices

• rise in most prices

• rise in some prices

• rise in general prices

_____ is the total monetary value of all the finished goods and services produced within a country's borders in a specific time period.

• Gross National Product

• Gross International Product

• Gross yearly product

• Gross Domestic Product

GDP per capita = GDP divided by __________

• Country's total population

• Country's total production

• Country's total demand

• Country's total supply

When too much money chases too few goods, the resulting inflation is called as ______

• Demand-pull inflation

• Cost-push inflation

• Built-in Inflation

• None of the above

When price increase due to increase in production factor prices, it is ______

• Demand-pull inflation

• Cost-push inflation

• Built-In inflation

• None of the above

Money has time value because:

• Money today is more certain than money tomorrow

• Money today is wroth more than money tomorrow in terms of purchasing power.

• There is a possibility of earning risk free return on money invested today.

• All of the above

GDP is measured using a formula __________

• C+G+I+E+I

• C+G+I+E-I

• C+G+I-E-I

• C+G+I-E+I