If the Price Level Is Increasing at 4% and Output

question 17

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:

Completed Units

Finished goods that have undergone all stages of production and are ready for sale or distribution.