Suppose That Over a Given Time Period Nominal GDP Rises

question 76

Multiple Choice

Suppose that over a given time period nominal GDP rises by 6 percent and real GDP rises by 4 percent. Over this period, we know that:

• A) the quantity of goods and services produced fell while prices increased.
• B) the quantity of goods and services produced increased while prices fell.
• C) both the quantity of goods and services produced and prices increased.
• D) both quantity of goods and services produced and prices fell.

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Definitions:

Sign Test

A non-parametric test used to evaluate the difference between the median of a paired sample and a hypothesized value.

Identical Medians

The statistical assessment that two or more groups have the same median value in their data distributions.

Identical Probability Distributions

Probability distributions that are exactly the same in terms of their statistical properties such as mean, variance, and skewness.

Single Population

Refers to a group or set of entities sharing one or more characteristics, from which data can be collected and analyzed as a unified whole.