If a Country Is Experiencing Inflation, It Would Mean That

question 190

Multiple Choice

If a country is experiencing inflation, it would mean that:

• A) nominal GDP and real GDP are growing at the same rate.
• B) nominal GDP is growing faster than real GDP.
• C) real GDP is growing faster than nominal GDP.
• D) nominal GDP is growing and real GDP is falling.

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Definitions:

Quantity Sold

The total number of units of a product or service sold in a given period.

Price Floor

A minimum price set by the government or other authority, below which a product or service cannot be sold.

Legal Minimum

The lowest allowed wage, price, or level for something as established by law or regulation, often applied to wages.

Good Sold

The term refers to merchandise or items that a company sells to its customers.