If Nominal GDP Increases 4 Percent During a Year, and Real

question 89

Multiple Choice

If nominal GDP increases 4 percent during a year, and real GDP increases 7 percent during the same year, which of the following must by true?

• A) The total value of GDP must have increased 11 percent during the year.
• B) The general level of prices as measured by the GDP deflator decreased by approximately 3 percent during the year.
• C) The general level of prices as measured by the GDP deflator increased by approximately 3 percent during the year.
• D) Imports must have been about 3 percent larger than exports during the year.

---

Definitions:

Glial Cells

Non-neuronal cells in the central and peripheral nervous system that provide support and protection for neurons, playing crucial roles in maintaining homeostasis, forming myelin, and participating in signal transmission.

Primary Functions

The fundamental or core roles that an organism, system, or component is naturally designed to perform.

Schwann Cells

Glial cells in the peripheral nervous system that wrap around axons, providing insulation (myelin) and support for nerve conduction.

Nerve Damage

Nerve damage involves harm or injury to nerve cells or fibers, leading to loss of function, pain, or numbness in the affected area of the body.