Suppose in Current Dollar Terms, GDP Increased by Approximately 7

question 95

Multiple Choice

Suppose in current dollar terms, GDP increased by approximately 7 percent between one period and the next, but real GDP fell by 2 percent. Which one of the following explanations is most likely?

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

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Definitions:

Better Educated

Having received a higher level or quality of education than average.

Compulsive Overeating

An eating disorder characterized by the uncontrollable urge to eat large quantities of food, often leading to weight gain and emotional distress.

Compulsive Overdieting

An unhealthy preoccupation with extreme dieting and weight loss, often to the detriment of one's physical and mental health.

Eating Disorders

Mental disorders characterized by abnormal or disturbed eating habits, such as anorexia nervosa, bulimia nervosa, and binge-eating disorder.