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:

Inequality

A mathematical expression showing that two quantities are not equal, using symbols like <, >, ≤, or ≥.

Graphing Calculator

A graphing calculator is a handheld computer that is capable of plotting graphs, solving simultaneous equations, and performing other tasks with variables.

Inequality

A mathematical statement that shows the relationship of non-equality between two values or expressions.

Real Number Line

A line that represents all possible real numbers in a continuous sequence, with positive numbers to the right of zero and negative numbers to the left.