The Table Below Shows the Price Indexes and the Nominal

question 114

Multiple Choice

The table below shows the price indexes and the nominal gross domestic product (GDP) for an economy from 2001 to 2005.The real GDP _____ between 2002 and 2003.
Table 6.3
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$$\begin{array} { c c c } \text { Year } & \text { Price Index } & \text { Nominal GDP } \\\hline 2001 & 100 & \$ 95 \text { billion } \\2002 & 105 & \$ 110 \text { billion } \\2003 & 110 & \$ 120 \text { billion } \\2004 & 120 & \$ 125 \text { billion } \\2005 & 132 & \$ 137.5 \text { billion }\end{array}$$

• A)decreased by slightly more than $5 billion
• B)increased by slightly more than $4 billion
• C)remained constant
• D)increased by only about $1 billion
• E)decreased by $6 billion

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