Suppose Nominal GDP Increased in a Given Year

question 56

Multiple Choice

Suppose nominal GDP increased in a given year.Based on this information,we know with certainty that

• A)real output has increased.
• B)the price level (GDP deflator)has increased.
• C)real output and the price level (GDP deflator)have both increased.
• D)either real output or the price level (GDP deflator)have increased.
• E) real output has increased and the price level has decreased.

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Definitions:

Inferences

Deductions or conclusions drawn from evidence and reasoning rather than from explicit statements.

Feasibility Section

A part of a plan or proposal that evaluates the practicality and possibility to implement the project or solution successfully.

Allotted Time

A specific duration designated for a particular task or activity.

Solution

A means of solving a problem or dealing with a challenging situation.