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:

Cognitive Therapies

Psychological treatments that focus on changing faulty or irrational thinking patterns, beliefs, and attitudes.

Systematic Desensitization

A therapeutic method used to cure phobias and other behavior problems involving anxiety, by gradual exposure to the feared object or situation in a controlled environment.

Token Economy

An operant conditioning procedure in which people earn a token for exhibiting a desired behavior and can later exchange the tokens for privileges or treats.

Transference

In psychoanalysis, the patient’s transfer to the analyst of emotions linked with other relationships (such as love or hatred for a parent).