A Country Reported a Nominal GDP of $100 Billion in 2012

question 32

Multiple Choice

A country reported a nominal GDP of $100 billion in 2012 and $75 billion in 2011 and reported a GDP deflator of 125 in 2012 and 120 in 2011.What happened to real output and prices from 2011 to 2012?

• A)Real output and prices both rose.
• B)Real output rose and prices fell.
• C)Real output fell and prices rose.
• D)Real output and prices both fell.

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Definitions:

Crystalline Structure

The highly ordered arrangement of atoms or molecules within a crystal, giving it characteristic physical properties.

Molten Rock

Rock that has been heated to a liquid state due to extreme temperatures found within the Earth's mantle and crust.

Earth's Surface

The outermost layer of the Earth, consisting of land and water, where various ecosystems and human activities are located.

Plate Tectonics

A scientific theory explaining the movement of the Earth's lithospheric plates and the associated phenomena such as earthquakes.