If Nominal GDP Increased by 11 Percent During a Year

question 29

Multiple Choice

If nominal GDP increased by 11 percent during a year while real GDP increased by only 5 percent, then the

• A)price level decreased by 6 percent.
• B)price level increased by 16 percent.
• C)price level remained steady but real output fell by 6 percent.
• D)unemployment rate fell during the year.
• E)price level increased by 6 percent.

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Definitions:

Social Power

The ability of an individual or group to influence or control the actions, beliefs, or conduct of others in a social context.

Culture

The total of everything in our social environment that we learn through socialization, that is passed down from one generation to the next, and that continues to change throughout our lives.

Social Environment

The social environment refers to the immediate physical and social setting in which people live or in which something happens or develops. It includes the culture that the individual is educated or lives in, and the people and institutions with whom they interact.

Customs And Traditions

The collective habits, practices, ceremonies, and rituals that are handed down within a culture, reflecting the values, beliefs, and history of a community.