A Country Reported a Nominal GDP of $115 Billion in 2015

question 131

Multiple Choice

A country reported a nominal GDP of $115 billion in 2015 and $125 billion in 2014 and reported a GDP deflator of 85 in 2015 and 100 in 2014.What happened to real output and prices from 2014 to 2015?

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

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Definitions:

Risky Shift

The tendency for groups to make riskier decisions than the average risk initially advocated by their individual members.

Faulty Hindsight

The misinterpretation or incorrect analysis of past events, often seeing them as more predictable than they actually were.

Previous Sunk Costs

Refers to resources that have already been spent and cannot be recovered.

Groups

A number of individuals assembled together or having some unifying relationship.