CFAI Practice: Pre — Aggregate Output, Prices, and Economic Growth

Total: 5 questions

Source: CFA Institute Practice Questions — Economics (2026)


Question 1

Using the expenditure approach, GDP is calculated as:

  • A. compensation of employees + gross operating surplus + taxes less subsidies
  • B. consumption + investment + government spending + net exports
  • C. sum of value added at each stage of production

Question 2

If nominal GDP is 1,200 and the GDP deflator is 120, real GDP is closest to:

  • A. 100
  • B. 1,000
  • C. 1,440

Question 3

In a closed economy with no government sector, the saving-investment identity states that:

  • A. saving must equal consumption
  • B. investment must equal saving
  • C. investment must equal net exports

Question 4

The aggregate demand (AD) curve slopes downward due to all of the following effects EXCEPT the:

  • A. wealth effect
  • B. substitution effect between domestic and imported goods via the exchange rate channel
  • C. multiplier effect from government fiscal spending

Question 5

When actual GDP is below potential GDP, the economy is most likely experiencing a:

  • A. recessionary gap
  • B. inflationary gap
  • C. stagflationary gap