Refer to the Diagram

question 57

Multiple Choice

Refer to the diagram. Which of the following statements is correct?

• A) The price index is greater than 100 for every year shown on the graph.
• B) Nominal GDP must be deflated in each year prior to 2000 to determine real GDP.
• C) Real GDP has grown in this economy, but nominal GDP has not.
• D) Nominal GDP must be deflated in each year after 2000 to determine real GDP.

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Definitions:

Lawful Order

A command or direction that is issued by a person in authority and that is legal in nature, requiring compliance.

Events

Occurrences or happenings that are significant in nature, often marked by a change or impact on the environment or individuals.

Absolute Truth

A concept in philosophy that indicates something is universally true at all times, regardless of circumstances or perceptions.

Science Goal

An objective or outcome that a scientific research or project aims to achieve, often involving discovery, explanation, or understanding of natural phenomena.