Week 2 — Quiz · Measuring Output: Gross Domestic Product
Course: Principles of Macroeconomics (ECON 2) · Silver Oak University (fictional sample) · Prof. Ashford
Objective 2 · 10 questions · 10 points · closed to AI · one attempt
Auto-graded (Classic QTI): see F-quiz-week-02-qti.xml for the Canvas import. Every numeric answer is pre-computed; every real-vs-nominal / deflator claim is verified.
The questions (human-readable; answer key below)
Q1. Using the expenditure approach, GDP is calculated as —
A) C + I + G − NX B) C + I + G + NX C) C + I − G + NX D) C − I + G + NX
Q2. A fictional economy called Brightwater reports C = 600, I = 250, G = 180, X = 90, M = 70 (billions). What is Brightwater's GDP?
A) $1,010 billion B) $1,030 billion C) $1,050 billion D) $1,190 billion
Q3. Which of the following is correctly counted as part of this year's GDP?
A) A retired worker's monthly Social Security check B) A used car resold between two private individuals C) A new factory completed this year D) Flour purchased by a bakery to bake bread sold the same year
Q4. (Select all that apply.) Which of the following do NOT get counted directly in GDP?
☑ A) A grandmother's Social Security check ☑ B) A 2023-model laptop resold on a marketplace this year ☐ C) A newly built apartment complex completed this year ☑ D) Steel purchased by a car manufacturer to build a car sold the same year ☑ E) Buying 100 shares of an existing company's stock on an exchange
Q5. An economy's nominal GDP is $1,050 billion and its real GDP is $875 billion. What is the GDP deflator?
A) 83 B) 100 C) 120 D) 150
Q6. (True/False) If a country's nominal GDP rises, its real GDP must also have risen. → False
Q7. A country's nominal GDP grew 8% this year, while its real GDP grew only 3%. What best explains the roughly 5-point gap?
A) Real GDP is measured incorrectly B) Rising prices (inflation) account for most of the gap, not more actual output C) The country must have had a recession D) Net exports fell sharply
Q8. In the GDP expenditure approach, net exports (NX) equal —
A) Exports plus imports (X + M) B) Exports minus imports (X − M) C) Imports minus exports (M − X) D) Imports alone (M)
Q9. (Matching) Match each term to its correct description.
Nominal GDP → Output valued at current (this-year) prices; Real GDP → Output valued at base-year (constant) prices; GDP deflator → (Nominal GDP ÷ Real GDP) × 100; Transfer payment → A payment like Social Security with no good or service produced in exchange. (Distractor: "The total market value of all final goods and services produced within a country's borders during a period" — this describes GDP itself, not one of the four terms above.)
Q10. A government's Investment (I) component of GDP includes —
A) Buying shares of an existing company's stock B) New business equipment, new residential construction, and inventory changes C) Social Security and unemployment benefit payments D) Interest paid on the national debt
Answer key & feedback (instructor)
| Q | Type | Answer | Feedback (the idea) |
|---|---|---|---|
| 1 | MC | B | GDP = C + I + G + NX — all four expenditure buckets ADDED (NX can itself be negative, but it's always added to the sum). |
| 2 | MC | C | NX = 90 − 70 = 20; GDP = 600 + 250 + 180 + 20 = $1,050 billion. |
| 3 | MC | C | A new factory is newly produced capital (I). The others are a transfer, a resale, and an intermediate good — none counted directly. |
| 4 | MA | A, B, D, E | Transfer (A), resale (B), intermediate good (D), and financial trade (E) are all excluded; a newly built apartment complex (C) IS counted (residential investment). |
| 5 | MC | C | Deflator = nominal ÷ real × 100 = 1,050 ÷ 875 × 100 = 120. Dividing the other way (real ÷ nominal) is the classic flip and would wrongly give about 83. |
| 6 | TF | False | Nominal GDP can rise purely from rising prices even if real GDP is flat or falling — nominal rising does NOT guarantee real GDP rose. |
| 7 | MC | B | A gap between nominal and real growth is (almost always) a price-level story — inflation — not evidence of a recession or an NX problem. |
| 8 | MC | B | NX = X − M (exports minus imports) — subtracting M is an accounting correction for goods already counted inside C, I, or G but not domestically produced. |
| 9 | Match | as above | Distractor is GDP's own definition, not one of the four listed terms — tests that students don't just pattern-match "sounds official." |
| 10 | MC | B | Investment (I) = new capital + residential construction + inventory changes — NOT buying existing stock (a financial trade) and NOT transfer payments. |
Quantitative gate: PASS — every numeric answer re-computed: Q2 NX=90−70=20, GDP=600+250+180+20=1,050; Q5 deflator=1,050÷875×100=120.
Graph-logic check: PASS (analog for this non-curve week — every real-vs-nominal/deflator-direction and counted-vs-not claim verified against the NUMBERS_PACK canon): Q1/Q8 NX = X−M (never X+M or M−X); Q5 deflator = nominal ÷ real × 100 (never inverted); Q3/Q4/Q10 counted-vs-not categories (transfer, resale, intermediate good, financial trade = NOT counted directly; new capital/residential construction/government purchases = counted) all correct; Q6/Q7 nominal-rising never conflated with real GDP rising.
Quality gate (self-checked): every single-answer item has exactly one correct option; distractors target the named traps (NX sign flipped, deflator formula flipped, counting a transfer/resale/intermediate good/financial trade directly, nominal-for-real substitution). ≥1 matching (Q9), ≥1 multiple-answer (Q4), ≥1 true/false (Q6). No free numeric entry; no essay.
F-quiz-week-02-qti.xml) ships inside the course's .imscc package — it lands in the Canvas gradebook on import.~ Prof. Ashford's edition · Fall 2026 · built with thecoursemaker.com