Suppose That Nominal GDP Were $1200 Billion in 1990 and $2000

question 19

Multiple Choice

Suppose that nominal GDP were $1200 billion in 1990 and $2000 billion in 1995.The implicit GDP deflator was 1.00 in 1990 and 1.50 in 1995.From this we can infer that,between 1990 and 1995

• A)nominal GDP rose by 33%.
• B)prices rose by 66%.
• C)real GDP remained constant.
• D)real GDP rose by about 11%.

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Definitions:

Principal

The original sum of money lent or invested, excluding any profits or interest generated from it.

Commission

A fee paid to an agent in a transaction, typically calculated as a percentage of the sale price.

Car Salesman

A person who sells new or used vehicles at a dealership.

Margins

The difference between the selling price of a good or service and its cost of production, often expressed as a percentage of the selling price, indicative of profitability.