Suppose Nominal GDP in a Country Rose in the Third

question 47

Multiple Choice

Suppose nominal GDP in a country rose in the third quarter of 2008 (from the second quarter) . Yet, real GDP fell in the third quarter of 2008. What could have accounted for this?

• A) The economy's price level declined over the second and third quarters of 2008.
• B) The general price level in the economy in the third quarter is higher than that in the second quarter of 2008.
• C) Production of goods must have increased by a greater rate than the increase in the economy's price level.
• D) The population of the country must have increased over the last quarter.

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Definitions:

Self-Discipline

The ability to control one's feelings and overcome one's weaknesses; the ability to pursue what one thinks is right despite temptations to abandon it.

Supervision

The act of overseeing or managing the work and performance of others, often in a workplace setting.

Commuting

The act of traveling between one's home and place of work or study, typically on a regular, daily basis.