Table 64 -Refer to Table 6

question 81

Multiple Choice

Table 6.4
$$\begin{array}{l}\text { Table } 6.4\\\begin{array} { c c c } \text { Year } & \text { Price Index } & \text { Nominal GDP } \\\hline 2001 & 100 & \$ 95 \text { billion } \\2002 & 105 & \$ 110 \text { billion } \\2003 & 110 & \$ 120 \text { billion } \\2004 & 120 & \$ 125 \text { billion } \\2005 & 132 & \$ 137.5 \text { billion }\end{array}\end{array}$$
-Refer to Table 6.4, which shows the price indexes and the nominal gross domestic product (GDP) for an economy from 2001 to 2005. The real GDP _____ between 2002 and 2003.

• A) decreased by slightly more than $5 billion
• B) increased by slightly more than $4 billion
• C) remained constant
• D) increased by only about $1 billion
• E) decreased by $6 billion

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Definitions:

Shift To The Right

A term often used in economics to describe an increase in supply or demand, represented graphically by a curve moving to the right on a graph, indicating growth or expansion.

Supply Curve Equation

The supply curve equation represents the relationship between the price of a good and the quantity of the good that producers are willing to supply, typically showing a positive relationship.

Advanced Analysis

Involves the use of sophisticated techniques and tools to examine data or problems to derive deeper insights or solutions.

P = 4 + 3Q

A linear equation representing a direct relationship between price (P) and quantity (Q), where 4 is the fixed component, and 3 indicates the change in price per unit change in quantity.