If the Price Level Is Increasing at 4% and Output

question 3

Multiple Choice

If the price level is increasing at 4% and output is increasing at 5%,then

• A)Real GDP is increasing faster than nominal GDP.
• B)Nominal GDP is increasing faster than real GDP.
• C)Nominal GDP is increasing at 20%.
• D)None of the choices are correct.

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Definitions:

Coherent Argument

An argument where all the premises logically support the conclusion and are consistent with each other.

Assert

To assert a fact or conviction with confidence and vigor.

Disjunctive Syllogisms

A form of logical argument where, from two propositions, each of which could be true or false, a definite conclusion is drawn.

Suspects

Individuals thought to be involved in or responsible for a criminal activity but not yet proven guilty.