Suppose That an Economy's Output Does Not Change from One

question 234

Multiple Choice

Suppose that an economy's output does not change from one year to the next, but the price level doubles. What happens to real GDP?

• A) Real GDP doubles.
• B) Real GDP is halved.
• C) Real GDP doesn't change.
• D) There is not enough information to determine what happens to real GDP.

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Definitions:

Artery Wall

The layered structure of an artery, composed of an inner endothelium, a middle muscular layer, and an outer connective tissue.

Vasa Vasorum

Small vessels distributed to the outer and middle coats of larger blood vessels.

Arteries

Blood vessels that carry blood away from the heart to various parts of the body.

Veins

Blood vessels that carry blood towards the heart, typically carrying deoxygenated blood from the tissues back to the heart, except for pulmonary and umbilical veins.