Nominal GDP Has Generally Risen More Rapidly Than Real GDP

question 153

Multiple Choice

Nominal GDP has generally risen more rapidly than real GDP since World War II in the United States, suggesting that

• A)the general price level has declined.
• B)the general price level has increased.
• C)productivity has increased substantially.
• D)world trade has increased.

---

Definitions:

Policy Makers

Individuals or groups responsible for creating and implementing policies or regulations within organizations or government.

Economy

The economy encompasses all activities related to production, consumption, and trade of goods and services in an area, showcasing how resources are managed and utilized.

Implementation Lag

The delay between the time a policy is enacted and the time its effects are observed in the economy.

Active Approach

A policy or management style that involves regular, dynamic decision-making and interventions to achieve specific goals, in contrast to a passive, hands-off approach.