Nominal GDP Is Less Than Real GDP in an Economy

question 107

Multiple Choice

Nominal GDP is less than real GDP in an economy in both year 1 and year 2.In year 3, nominal GDP is equal to real GDP.In year 4, nominal GDP is slightly greater than real GDP.In year 5, nominal GDP is significantly greater than real GDP.Which year is the base year being used to calculate the price index for this economy?

• A)2
• B)3
• C)4
• D)5

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Definitions:

Southern States

Refers to the states located in the southeastern and south-central United States, often characterized by distinct historical, cultural, and political attributes.

Supreme Court

The judicial branch of the U.S. government tasked with interpreting the Constitution, reviewing laws, and adjudicating disputes involving states or federal statutes.

Dual Federalism

refers to a political system where the responsibilities and powers of the federal government and state governments are distinctly separated, often termed as "layer cake" federalism.

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The organization through which a nation's political authority is exercised, including all branches of government at the national or federal level.