GDP Cheat Sheet 2026

The 30 highest-yield GDP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which of the following would cause GDP per capita to rise even if total GDP stays constant? → A decline in population
2. If a currency's PPP-implied value is significantly higher than its current market exchange rate value, this most directly suggests the currency is: → Undervalued in currency markets
3. The net value of Gross Domestic Product after deducting depreciation from it is _______. → Net Domestic Product
4. Which of the following countries consistently ranks among the highest in the world for GDP per capita? → Luxembourg
5. An American citizen is an accomplished architect who lives and works for a firm in Canada. The income she earns is included in: → U.S. GNP and Canadian GDP.
6. Which of the following is the most appropriate use of Real GDP? → Analyzing the change in economic output over several years.
7. A country with a lower nominal GDP per capita might show a higher PPP-adjusted GDP per capita primarily because: → Its lower domestic price levels mean each unit of currency buys more goods and services
8. Which of the following is not a method to calculate Gross Domestic Product? → Diminishing cost method
9. Using 2006 as the base year, calculate the real GDP for 2007. → $225
10. A country's GDP calculation would NOT include which of the following? → The illegal sale of goods in an underground economy.
11. If nominal GDP increased by 5.1% and real GDP increased by 2.5% last year, which of the following is TRUE? → Prices went up during the year.
12. If Nominal GDP in a given year is higher than Real GDP, what does this indicate about the economy's price level relative to the base year? → The price level has increased since the base year.
13. All of the following are recognized limitations of Gross Domestic Product (GDP) as a measure of societal well-being EXCEPT: → Its failure to measure the monetary value of all market transactions.
14. A retired individual receives a monthly Social Security payment from the government. Why is this payment not included in the nation's GDP? → It represents a transfer of income, not payment for current production.
15. Which index is commonly used alongside GDP per capita to give a broader measure of living standards? → Human Development Index (HDI)
16. Which of the following is a primary component of the income approach to calculating GDP? → Compensation of Employees
17. A country's GDP deflator in the current year is 125, using Year X as the base year. What is the correct interpretation of this value? → C) The overall price level has increased by 25% since the base year, Year X.
18. Which of the following correctly describes the impact of a foreign direct investment (FDI) inflow into the U.S. on GDP? → It increases U.S. gross private domestic investment (I), boosting GDP
19. In the National Income and Product Accounts (NIPA), where are services sold to foreign tourists visiting the U.S. recorded? → As U.S. exports, increasing net exports and GDP
20. The Penn World Tables, widely used by economists for international PPP comparisons, were developed primarily at: → The University of Pennsylvania
21. Real GDP per capita adjusts nominal GDP per capita by: → Removing the effects of inflation
22. Which of the following best describes GDP per capita? → A measure of average economic output per person
23. When a foreign company purchases U.S.-made aircraft, this transaction: → Increases U.S. exports and raises U.S. GDP
24. A country's Nominal GDP increased by 5% in a year, while the GDP deflator increased by 2%. What was the approximate change in Real GDP? → 3%
25. In the expenditure approach to GDP, net exports (NX) are calculated as: → Exports minus imports
26. Which of the following is a major limitation of using GDP per capita as a measure of living standards? → It does not reflect the distribution of income across the population
27. If the United States imports more than it exports, what happens to GDP? → GDP is reduced because net exports are negative
28. PPP-adjusted GDP per capita is preferred over nominal GDP per capita for international comparisons because it: → Accounts for differences in price levels between countries
29. If the U.S. real GDP per capita in 2000 was $45,000 and in 2020 it was $58,500, the percentage increase was approximately: → 30%
30. If U.S. exports increase by $200 billion while imports increase by $300 billion, the net effect on GDP from trade is: → A decrease of $100 billion