To Determine Whether an Economy's Output Is Growing or Shrinking

question 104

Multiple Choice

To determine whether an economy's output is growing or shrinking, one must keep track of

• A)changes in nominal GDP.
• B)changes in the growth rate of nominal GDP.
• C)changes in the general price level.
• D)changes in real GDP.

---

Definitions:

Reciprocity Norm

A social norm suggesting that people should return the help they have received from others, creating a cycle of mutual assistance.

Social Influence Tactics

Strategies used by individuals or groups to change the beliefs, attitudes, or behaviors of others in a particular direction.

Scarcity

The state of being in short supply; a situation where resources are insufficient to satisfy the needs or wants of individuals or societies.

Reactance

A psychological response that occurs when people feel their freedom to choose is being limited, prompting a motivation to regain that freedom.