If Nominal GDP Increased from $4 Billion to $5 Billion

question 111

Multiple Choice

If nominal GDP increased from $4 billion to $5 billion while real GDP increased from $3 billion to $4 billion, it follows that:

• A)the price level and real output increased at the same rate.
• B)real output rose and price level fell.
• C)the price level increased at a faster rate than real output.
• D)the price level rose by 25%.

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Definitions:

Magnetite

A naturally occurring magnetic mineral, consisting of iron oxide, often mined as an iron ore.

Perpendicular Directions

This refers to two lines or directions that intersect at a 90-degree angle.

Nonperpendicular Directions

Nonperpendicular directions refer to lines or paths that do not intersect at a right angle, diverging from orthogonality in a spatial relationship.

Ordered Internal

Pertaining to a structured, consistently arranged or systematic organization within a material or system.