Suppose an Economy Has Some Inflation

question 175

Multiple Choice

Suppose an economy has some inflation. Then, after a base year, the value of real GDP will

• A) be less than nominal GDP.
• B) not be different from nominal GDP.
• C) be greater than nominal GDP.
• D) will be approximately half the value of nominal GDP.

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Definitions:

Umami

One of the five basic tastes, often described as savory or meaty, and is a flavor enhancer found in foods like tomatoes and cheese.

Basic Taste

One of the fundamental groups of taste sensations, including sweet, sour, salty, bitter, and umami.

Gestalt Principle

A theory in psychology that proposes the human brain sees objects in their entirety before perceiving their individual parts, suggesting that the whole is greater than the sum of its parts.

Continuity

The unbroken and consistent existence or operation of something over a period of time.