If Nominal GDP Grew by 5 Percent and Real GDP

question 74

Multiple Choice

If nominal GDP grew by 5 percent and real GDP grew by 3 percent, then the GDP deflator grew by approximately ______ percent.

• A) 2
• B) 3
• C) 5
• D) 8

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Definitions:

Deliberate Choice

The act of making a decision consciously and intentionally.

Availability Heuristic

A psychological shortcut that leverages the readily available examples in someone's consciousness when deliberating on a particular matter, concept, methodology, or decision.

Airplane Crash

An incident involving the failure and destruction of an aircraft during flight, usually leading to casualties.

Automobile Crash

An incident involving one or more vehicles colliding with another vehicle, object, pedestrian, or cyclist, often resulting in damage or injury.