If Nominal GDP Rises

question 96

Multiple Choice

If nominal GDP rises,

• A) real GDP may either rise or fall.
• B) we can be certain that the price level has risen.
• C) real GDP must fall.
• D) real GDP must also rise.

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Definitions:

Fault

a crack in the Earth's crust resulting from the displacement of one side with respect to the other.

Subsiding

The process of sinking or settling of the Earth's surface, often due to natural geological processes or extraction of underground resources.

Formation

The process of creating something, whether geological like rock formations, or formation in general, implying an act of coming into existence.

Continental Hot Spot

A region on a continent where hot plumes of mantle material rise, causing volcanic activity and thermal phenomena.