Suppose Nominal GDP in a Country Rose in the Third

question 47

Multiple Choice

Suppose nominal GDP in a country rose in the third quarter of 2008 (from the second quarter) . Yet, real GDP fell in the third quarter of 2008. What could have accounted for this?

• A) The economy's price level declined over the second and third quarters of 2008.
• B) The general price level in the economy in the third quarter is higher than that in the second quarter of 2008.
• C) Production of goods must have increased by a greater rate than the increase in the economy's price level.
• D) The population of the country must have increased over the last quarter.

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Definitions:

Ethical Unethical

Pertaining to the distinction between actions or decisions that are morally right (ethical) and those that are morally wrong (unethical).

Perceptions

The process by which individuals interpret and make sense of sensory information, which can influence their behavior and decision-making.

Values

Broad beliefs about what is or is not appropriate behaviour.

Ethical Problems

Moral dilemmas or issues arising in a situation where a decision about right and wrong must be made.