If Real GDP Is Greater Than Nominal GDP Then the GDP

question 213

Multiple Choice

If real GDP is greater than nominal GDP then the GDP price index ________.

• A)is greater than 100
• B)is less than 100
• C)is equal to 100
• D)either equal to or greater than 100
• E)None of the above answers is correct because we need to choose a new base year.

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Definitions:

International Trade

The exchange of goods and services between countries, driven by comparative advantages and resulting in increased economic efficiency and wealth.

World Output

The total production of goods and services by all countries in the world over a specified period.

Consumption Levels

The quantity of goods and services that individuals or communities use or consume.

Domestic Price

Domestic price refers to the price of goods or services within a country's borders, influenced by domestic supply and demand, taxes, and subsidies.