If Nominal GDP Increased by 11 Per Cent While Real

question 8

Multiple Choice

If nominal GDP increased by 11 per cent while real GDP increased by only five per cent, then:

• A)the price level must have increased by around six per cent
• B)the price level must have increased by around 16 per cent
• C)the price level remained steady but real output fell by around six per cent
• D)the unemployment rate must have fallen during the year

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Definitions:

Complementary Traits

Characteristics or qualities in individuals that, when combined, enhance mutual compatibility and effectiveness in relationships or team dynamics.

Dominant

Referring to a trait that supersedes another inherited trait in the phenotype of an organism.

Submissive

Ready to conform to the authority or will of others; meekly obedient or passive.

Marries

The act of entering into a legal or spiritual union with another person, recognized by society or religious institutions as a partnership.