Macroeconomics — true or false?

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   GDP measures the total value of final goods and services produced in a country.

2. Statement is true

   Yes

   Statement

   Real GDP is GDP adjusted for inflation.

3. Statement is true

   No

   Statement

   Inflation always reduces nominal GDP.

4. Statement is true

   Yes

   Statement

   CRR is the share of bank deposits banks must keep with RBI.

5. Statement is true

   No

   Statement

   Repo rate is the rate at which RBI borrows from commercial banks.