Which of the Following Is a Macroeconomic Statement

question 52

Multiple Choice

Which of the following is a macroeconomic statement?

• A)Motorcycle manufacturer productivity decreased by three percent in 2010.
• B)The price of cell phones decreased by 18 percent last year.
• C)Real domestic output of seafood increased 12 percent from 2009 to 2010.
• D)The U.S. inflation rate was two percent in 2010.

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Definitions:

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust nominal GDP to real GDP.

Inflation Rate

The frequency at which the overall price of goods and services inflates, reducing the effectiveness of the purchasing capacity.

Nominal GDP

The gross domestic product measured in current prices, without adjustment for inflation, representing the value of all finished goods and services produced within a country's borders in a specific time period.

Real GDP

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices, to provide a truer reflection of economic growth.