An Increase in the Rate of Growth of Nominal GNP

question 17

Multiple Choice

An increase in the rate of growth of nominal GNP

• A)will cause a greater increase in real GNP the lower the rate of inflation.
• B)will cause a smaller increase in real GNP the lower the rate of inflation.
• C)will shift the SP curve upward.
• D)will shift the SP curve downward.

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Definitions:

Purely Competitive

A commercial framework with a vast number of tiny enterprises, a single type of product, freedom to enter and leave, and total transparency of information.

Allocative Efficiency

An allocation scenario where it's not feasible to enhance one person's well-being without negatively impacting another's.

Scarce Resources

Limited natural, human, and capital resources that cannot satisfy all wants and needs.

Consumer Preferences

Describes the subjective tastes and preferences of individual consumers, influencing their purchasing decisions.