If a Country's Nominal GDP Increases by 5% Between Two

question 96

Multiple Choice

If a country's nominal GDP increases by 5% between two years while its GDP deflator increases by 4%, the country's real GDP:

• A) increases by 9%.
• B) increases by 1%.
• C) decreases by 1%.
• D) decreases by 9%.

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Definitions:

Descriptive Words

Words that are used to describe or give more information about a noun or pronoun.

Same Density

A condition where two substances have an equal mass-to-volume ratio.

Fault

A fracture along which the adjacent rock surfaces are displaced parallel to the fracture.

Rock Layers

Horizontal strata of rocks, each layer typically representing a period of deposition in Earth's geological history.