If Nominal or Money GDP Increases 6 Percent in 2011

question 94

Multiple Choice

If nominal or money GDP increases 6 percent in 2011 (compared to 2010) , and real GDP increases 4 percent over the same period, which of the following must be true?

• A) Exports exceeded imports.
• B) The general price level as measured by the GDP deflator fell during 2011.
• C) The economy entered a recession in 2011.
• D) Inflation during 2011 was 2 percent.

---

Definitions:

Fat Reserves

Stored energy in the form of fat, accumulated in adipose tissue and used by the body during times of scarcity.

Body Oxidizes

The process by which the body metabolizes substances to produce energy, involving the transfer of electrons to oxygen.

NADH Molecules

Nicotinamide adenine dinucleotide (NADH) is a coenzyme involved in redox reactions, carrying electrons from one reaction to another in cellular respiration.

Electron-Transport Chain

A sequence of compounds facilitating electron flow from electron-donating entities to electron-accepting entities via redox processes, concurrently coupling this flow with proton (H+ ions) migration across a membrane.