Question

Q1. Which of the following economic measures will most likely increase as a result of a general increase in the price af goods produced in a country? A. Real GDP B. Nominal GDP C. Constant dollar GDP


Q2. Performance attribution on an active portfolio strategy is designed to: A. measure the levels of risk within a portfolio. B. assess from where a fund manager's performance was derived. C. measure how well a fund manager is performing relative to an expected return.

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Answer 1

Answer:

The GDP price deflator measures the changes in prices for all of the goods and services produced in an economy.

Using the GDP price deflator helps economists compare the levels of real economic activity from one year to another.

The GDP price deflator is a more comprehensive inflation measure than the CPI index because it isn't based on a fixed basket of goods.