If the Growth Rates of Nominal GDP and Real GDP

question 46

Multiple Choice

If the growth rates of nominal GDP and real GDP in an economy are 6 percent and 2 percent,respectively,the inflation rate in the economy must be ________.

• A) 2 percent
• B) 3 percent
• C) 4 percent
• D) 8 percent

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Definitions:

Type

A category or class that individuals or things can be grouped into based on shared characteristics or qualities.

Implied Warranty

A legal term for the unspoken and unwritten guarantees that the law assumes goods or services must meet.

Trade Custom

Established practices and patterns of behavior that are widely accepted within a particular industry.

Contract

A contract between two or more entities that is recognized by law and entails shared responsibilities.