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:

Higher-Order Cognition

Cognitive processes that involve complex thinking, including reasoning, problem-solving, planning, and decision-making, beyond basic perception and memory.

Rational System

A decision-making process or organizational framework that is based on logical reasoning, analysis, and evaluation of available information.

Physiological Arousal

Refers to the body's physical response to stimuli, which can include increased heart rate, heightened senses, and a surge of adrenaline.

Primary Appraisal

The initial evaluation process in coping where an individual assesses the significance of an event as a threat, challenge, or harm.