If Real GDP Falls from One Period to Another, We

question 182

Multiple Choice

If real GDP falls from one period to another, we can conclude that:

• A)deflation occurred.
• B)inflation occurred.
• C)nominal GDP fell.
• D)less goods and services have been produced.

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Definitions:

Backlash

The play or loose movement in mechanical components, particularly in gears, resulting from gaps between parts.

Gear Teeth

The individual protrusions on the circumference of a gear that engage with those on another gear to transmit torque and motion.

Runout

A defect that causes side-to-side or lateral movement in a spinning object. In wheels it is commonly caused by imperfections in the wheel’s shape; in disc brakes it can be caused by a distorted rotor, hub flange distortion, or worn wheel bearings.

Electrons

Subatomic particles whose activity creates electric currents.