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.

---

Definitions:

George H. W. Bush

The 41st President of the United States (1989-1993), known for his leadership during the Gulf War and efforts to handle post-Cold War international relations.

Presidential Election

A process in which citizens of the United States vote for their leader, the President, through a system of electoral votes which are determined state by state.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, noticeable in GDP, employment, and trade.

Computer Technology

The design, development, and application of devices, software, and systems that process data and perform tasks.