Refer to the Above Diagram

question 94

Multiple Choice

Refer to the above diagram.Which of the following statements is correct?

• A)The price index is greater than 100 for every year shown on the graph.
• B)Nominal GDP must be deflated in each year prior to 1992 to determine real GDP.
• C)Real GDP has grown in this economy, but nominal GDP has not.
• D)Nominal GDP must be deflated in each year since 1992 to determine real GDP.

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Definitions:

Accomplished

Having successfully completed or achieved a goal or objective; skilled and capable.

Received

Pertains to goods, services, or payments that have been accepted or taken in by an individual or organization.

Bought

The past tense of buy, referring to the acquisition of goods or services in exchange for money.

Efficiency

Efficiency refers to the ability to accomplish a task or produce a desired outcome with the minimum amount of waste, expense, or unnecessary effort.