The figure below shows real and nominal GDP for a hypothetical economy between 1967 and 1978. Assume this economy had the same inflationary experience as the United States did over this period. 
(A)What year is the base year?
(B)Which series is real GDP?
(C)Prior to the base year, is real GDP greater than or less than nominal GDP? Why?
Definitions:
Repression
In psychoanalytic theory, the basic defense mechanism that banishes from consciousness anxiety-arousing thoughts, feelings, and memories.
Long-Term Memory
The aspect of memory where information is stored for an extended period, ranging from hours to a lifetime.
Retrieval Failure
Occurs when memories are not accessible from long-term storage, often due to a lack of cues or interference from other information.
Anterograde Amnesia
A condition affecting memory, where after the onset of the amnesia, the affected individual is unable to form new memories, though long-term memories from before the event remain intact.
Q52: The U.S. economy moved closer to deflation
Q53: During the Great Depression, the unemployment rate<br>A)
Q77: Cyclical unemployment refers to that kind of
Q78: According to the labor-supply-and-demand model if the
Q84: The United States currently runs two large
Q120: Explain how the interest rate behaves like
Q130: Does unemployment affect different demographic groups equally?
Q136: Which of the following is the best
Q137: The natural unemployment rate is based on<br>A)
Q185: According to the job-rationing explanation of unemployment,