-Refer to the Table in the Exhibit

question 42

Multiple Choice

$$\begin{array} { c c c } \hline \text { Year } & \text { Consumer price index } & \text { Nominal GDP } \\\hline 2001 & 100 & \$ 95 \text { billion } \\2002 & 105 & \$ 110 \text { billion } \\2003 & 110 & \$ 120 \text { billion } \\2004 & 120 & \$ 125 \text { billion } \\2005 & 132 & \$ 137.5 \text { billion } \\\hline\end{array}$$
-Refer to the table in the exhibit.Between 2004 and 2005, what has happened to real GDP for this nation?  

• A) It increased by about $5 billion. 
• B) It increased by about $2 billion. 
• C) It remained almost constant. 
• D) It decreased by about $5 billion.

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Definitions:

Japanese Automobile

A car manufactured by a company based in Japan, known for reliability, efficiency, and advanced technology.

Canadian Dollars

The currency of Canada, represented by the symbol CAD, and used throughout the country for financial transactions.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

Appreciate

The increase in value of an asset over time.