If Real GDP Declines in a Given Year, Nominal GDP

question 43

Multiple Choice

If real GDP declines in a given year, nominal GDP

• A)must also be declining.
• B)must also be increasing.
• C)may either rise or fall.
• D)is likely to remain constant.

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Definitions:

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A tax levied on goods imported into a country.

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Public Choice Analysis

is a field of economics that applies economic reasoning to political science, analyzing government actions in terms of economic efficiency and individual behaviors.