Suppose an Economy Has Some Inflation

question 256

Multiple Choice

Suppose an economy has some inflation. Then, after a base year, the value of real GDP will

• A) be greater than nominal GDP.
• B) will be approximately half the value of nominal GDP.
• C) not be different from nominal GDP.
• D) be less than nominal GDP.

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Definitions:

Erikson

Refers to Erik Erikson, a developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings, identifying eight stages of human development.

Behaviorist Theory

A theory of learning which states that behaviors are learned from the environment through the processes of conditioning.

Rewards and Punishments

Behavioral tools used to reinforce desired behaviors or diminish undesired ones, often employed in educational and developmental contexts.

Learning

A relatively permanent change in behavior brought about by making associations between behavior and events in the environment.