If the Percent Change in Nominal GDP Is 6% and the Percent

question 150

Multiple Choice

If the percent change in nominal GDP is 6% and the percent change in real GDP is 2%, inflation is:

• A)0%.
• B)2%
• C)4%.
• D)6%.

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Definitions:

Perception

The process through which people receive, organize, and interpret information from the environment.

Self-serving Bias

The common tendency to attribute one's successes to personal characteristics and failures to external factors.

False Confidence

An unfounded belief in one's abilities or outcomes, which can lead to taking undue risks or making poor decisions.

Glass Ceiling Effect

An invisible barrier limiting career advancement of women and members of visible minorities.