If Nominal GDP Increases by 4 Percent, Then

question 137

Multiple Choice

If nominal GDP increases by 4 percent, then

• A) real output has increased by 4 percent
• B) the price level has increased by 4 percent
• C) consumer spending must have increased by 4 percent
• D) it is possible that all of the increase was caused by an increase in the price level
• E) net exports increased by 4 percent

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Definitions:

Chi-Squared Test

A statistical test used to determine if there is a significant association between two categorical variables.

Nominal Variables

Variables that represent categories with no intrinsic ranking or order, such as gender, nationality, or brand names.

Degrees of Freedom

The number of values in a calculation that are free to vary without violating any constraints.

Contingency Table

A tabular method to display the frequency distribution of variables along with their joint distribution.