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:

Delegable Duty

A responsibility or duty that can be transferred or assigned from one party to another, often seen in contexts of employment or contractual agreements.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, although the benefit was not the reason the contract was formed.

Donee Beneficiary

A third party who benefits from a contract made between two other parties, particularly where the contract's intent is to gift something to the beneficiary.

Creditor Beneficiary

A third party that benefits from a contract in which one party promises to pay a debt owed to the third party by the other contract party.