If Both Nominal GDP and Real GDP Increase from One

question 109

Multiple Choice

If both nominal GDP and real GDP increase from one year to the next, but the increase in real GDP is smaller than that of nominal GDP, we can conclude that:

• A) prices went up, but output stayed the same.
• B) prices stayed the same, but output went up.
• C) both prices and output went up.
• D) both prices and output stayed the same.

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Definitions:

American Consumers

Individuals or households in the United States engaging in the consumption of goods and services.

Natural Monopoly

A market structure where a single firm can supply a good or service to an entire market at a lower cost than could two or more firms due to economies of scale.

Economic Power

The capacity of an entity, whether a nation, corporation, or individual, to influence or control economic activities and outcomes.

CEO Compensation

The total remuneration package, including salary, bonuses, and stock options, offered to the chief executive officer of a corporation.