Nominal GDP Is $1,800 and Real GDP Is $1,600

question 18

Multiple Choice

Nominal GDP is $1,800 and real GDP is $1,600. The GDP deflator is

• A)112.5.
• B)88.8.
• C)8.88.
• D)11.25.
• E)1125.

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Definitions:

Absolute Value

Refers to the distance of a number from 0 on the number line, without considering direction.

Correlation Coefficient

A statistical index measuring the strength and direction of a linear relationship between two variables.

Average Error

A statistical measure that averages the absolute differences between the observed values and the values predicted by a model.

Independent Variable

The variable that is manipulated in an experiment to observe its effect on the dependent variable.