79. If the nominal GDP rises by 6 percent and the real GDP rises by 3 percent, then the price level ________ by ________ percent. falls; 9 d. rises; 3 a. There is no change in inflation. e. rises; 9 b. falls; 3 c. ANS: A DIF: Moderate REF: 2.3 TOP: III.C.2. MSC: Applying 80. FRED stands for: Food and Resource Economics Department. a. Financial Reporting Exposure Draft. b. Federal Reserve Economic Database. c. Florida Research & Economic Database. d. Faculty Research Expertise Database. e. ANS: C DIF: Easy REF: 2.3 TOP: III.C.3. MSC: Remembering 81. To get a more accurate view of the size of we first need to convert each countries’ economies, GDP to the dollar using ________ and then adjust for ________. country’s the interest rate; the exchange rate a. the exchange rate; price level differences b. price level differences; the interest rate c. the exchange rate; fiscal policy d. fiscal policy; the exchange rate e. ANS: B DIF: Moderate REF: 2.4 TOP: IV. MSC: Analyzing 82. If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, which of the following would we use? a. b. c. d. None of these answers is correct. e. ANS: A DIF: Moderate REF: 2.4 TOP: IV. MSC: Applying 83. If we want to calculate the U.S. real GDP in Mexican pesos, which of the following would we use? a. b. c. d. None of these answers is correct. e. ANS: B DIF: Moderate REF: 2.4 TOP: IV. MSC: Applying 84. Define  $/£ as the dollar/pound exchange rate and NGDPUK as the United nominal E Kingdom’s GDP; then , the United nominal GDP in dollars, is given by: Kingdom’s . d. . a. None of these answers is correct. e. . b.
79. If the nominal GDP rises by 6 percent and the real GDP rises by 3 percent, then the price level ________ by ________ percent. a. rises; 3 d. falls; 9 b. rises; 9 e. There is no change in inflation. c. falls; 3 ANS: A DIF: Moderate REF: 2.3 TOP: III.C.2. MSC: Applying 80. FRED stands for: a. Food and Resource Economics Department. b. Financial Reporting Exposure Draft. c. Federal Reserve Economic Database. d. Florida Research & Economic Database. e. Faculty Research Expertise Database. ANS: C DIF: Easy REF: 2.3 TOP: III.C.3. MSC: Remembering 81. To get a more accurate view of the size of countries’ economies, we first need to convert each country’s GDP to the dollar using ________ and then adjust for ________. a. the interest rate; the exchange rate b. the exchange rate; price level differences c. price level differences; the interest rate d. the exchange rate; fiscal policy e. fiscal policy; the exchange rate ANS: B DIF: Moderate REF: 2.4 TOP: IV. MSC: Analyzing 82. If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, which of the following would we use? a. b. c. d. e. None of these answers is correct. ANS: A DIF: Moderate REF: 2.4 TOP: IV. MSC: Applying 83. If we want to calculate the U.S. real GDP in Mexican pesos, which of the following would we use? a. b. c. d. e. None of these answers is correct. ANS: B DIF: Moderate REF: 2.4 TOP: IV. MSC: Applying 84. Define E  $/£ as the dollar/pound exchange rate and NGDPUK as the United Kingdom’s nominal GDP; then , the United Kingdom’s nominal GDP in dollars, is given by: a. . d. . b. . e. None of these answers is correct.