If Nominal GDP Rises

question 96

Multiple Choice

If nominal GDP rises,

• A) real GDP may either rise or fall.
• B) we can be certain that the price level has risen.
• C) real GDP must fall.
• D) real GDP must also rise.

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Definitions:

Leisure Time

Free time that an individual can spend away from work, business, or domestic chores, often used for relaxation, recreation, or hobbies.

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods and services that can be produced using limited resources.

Operate Inside

To conduct activities within a certain area or system.

Production Possibilities Curve

A graphical representation showing the maximum quantity of two goods that can be produced with available resources and technology, illustrating trade-offs and opportunity costs.