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:

Aversive Effects

Unpleasant outcomes or reactions that are intended to discourage a behavior or action.

Boredom

A state of disinterest or weariness that occurs when an individual feels unengaged by their current activity or surroundings.

Self-Actualization

According to Maslow, one of the ultimate psychological needs that arises after basic physical and psychological needs are met and self-esteem is achieved; the motivation to fulfill one’s potential.

Economic Security

The state of having stable income or other resources to support a standard of living now and in the foreseeable future.