A Country Reported a Nominal GDP of $85 Billion in 2015

question 91

Multiple Choice

A country reported a nominal GDP of $85 billion in 2015 and $100 billion in 2014 and reported a GDP deflator of 100 in 2015 and 105 in 2014.What happened to real output and prices from 2014 to 2015?

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

---

Definitions:

Void Contracts

Agreements that are illegal or against public policy and therefore unenforceable by law.

Bilateral Contract

A contract in which the promise of one of the parties forms the consideration for the promise of the other.

Unilateral Contract

A contract where one party makes a promise in exchange for an act by the other party.

Quasi-contract

A quasi-contract is a legal concept where the court imposes a contract-like obligation on a party to prevent unjust enrichment, even though no actual agreement exists between the parties.