The Data Below Show Data for Germany Including Real GDP

question 216

Multiple Choice

The data below show data for Germany including real GDP in billions of euros) and the price level.
$$\begin{array} { | l | l | l | } \hline & \text { Real GDP } & \text { Price Level } \\\hline 2002 & 2088 & 102.6 \\\hline 2003 & 2083 & 103.6 \\\hline 2004 & 2105 & 106 \\\hline 2005 & 2121 & 108.2 \\\hline 2006 & 2182 & 109.7 \\\hline 2007 & 2237 & 109.5 \\\hline\end{array}$$
In which of the following years) did Germany experience inflation?

• A) 2002, 2005 and 2006 only.
• B) 2007.
• C) 2006 and 2007.
• D) 2003, 2004, 2005 and 2006.

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Definitions:

Profit-Maximizing Price

The price at which a firm can maximize its profits, determined by the market structure and demand elasticity.

Profit-Maximizing Price

The price at which a company can sell its product to achieve the maximum possible profit.

Perm

A chemical hair treatment used to add curls or waves to the hair, or the city located in the European part of Russia, known for its cultural and historical significance.

Economic Profits

The variance between total financial gains and total charges, taking into account both manifest and implied costs.