If Nominal GDP Is $10 Trillion and Real GDP Is

question 16

Multiple Choice

If nominal GDP is $10 trillion and real GDP is $12 trillion,then the GDP deflator is

• A)83.33,and this indicates that the price level has decreased by 16.67 percent since the base year.
• B)83.33,and this indicates that the price level has increased by 83.33 percent since the base year.
• C)120,and this indicates that the price level has increased by 20 percent since the base year.
• D)120,and this indicates that the price level has increased by 120 percent since the base year.

Understand the concept of depreciation and its mathematical representation through linear equations.

Understand the basic concepts and terminology related to financial markets and securities.

Identify different types of financial assets including stocks, bonds, and mutual funds.

Recognize the function and importance of financial markets.

---

Definitions:

Digits

The numbers from 0 to 9 used in counting and calculations, and also refer to the fingers and toes in humans.

Movement

The action or process of moving or being moved, pertinent to physical processes and mechanics within biological systems.

Glabrous Skin

Areas of the skin that are naturally hairless, such as the palms of the hands and the soles of the feet.

Discriminate

The ability to perceive and understand the difference between multiple stimuli or conditions, or the unjust or prejudicial treatment of different categories of people or things.