If Over a Period of Time Real Gross Domestic Product

question 45

Multiple Choice

If over a period of time real gross domestic product (GDP) increases while nominal GDP decreases,then this implies

• A) a significant rise in the price level.
• B) a significant drop in the price level.
• C) that real GDP is much less than nominal GDP.
• D) that the given period occurs before the base period.
• E) that the given period year occurs after the base period.

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Definitions:

Piaget's Processes

The cognitive processes according to Jean Piaget that describe how children develop intellectual abilities, including assimilation, accommodation, and equilibration.

Assimilation

The cognitive process in which new information is integrated into existing schemas, beliefs, or understanding.

Suck Reflexively

An innate reflex in infants enabling them to suckle for feeding.

Mental Structure

The organization and framework of the mind that influences how individuals think, perceive, and understand the world.