In a Given Year, Nominal GDP Increases by Approximately 7

question 35

Multiple Choice

In a given year, nominal GDP increases by approximately 7 percent, but real GDP falls by 2 percent.Which one of the following explanations is most likely?

• A)Prices increased by 7 percent.
• B)Prices fell by 2 percent.
• C)Prices fell by 9 percent.
• D)Prices increased by 9 percent.
• E)Output rose by 2 percent.

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Definitions:

Chi-squared Goodness-of-fit Test

A statistical test used to determine whether observed frequencies differ significantly from expected frequencies specified by a theoretical distribution.

Rule of Five

An empirical rule suggesting that extreme observations in data, more than five standard deviations from the mean, are rare.

Expected Value

The long-term average value of a random variable over numerous trials.

Student Body Proportions

The distribution of various characteristics (e.g., gender, major, year) within a school's student population, often analyzed in educational studies.