If Nominal GDP Increases 4 Percent During a Year, and Real

question 89

Multiple Choice

If nominal GDP increases 4 percent during a year, and real GDP increases 7 percent during the same year, which of the following must by true?

• A) The total value of GDP must have increased 11 percent during the year.
• B) The general level of prices as measured by the GDP deflator decreased by approximately 3 percent during the year.
• C) The general level of prices as measured by the GDP deflator increased by approximately 3 percent during the year.
• D) Imports must have been about 3 percent larger than exports during the year.

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Definitions:

Occipital Lobe

The area of the brain situated at the rear of the skull, tasked with interpreting visual data.

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A fictional character archetype in stories, typically opposed to the hero, who shows no fear in facing dangers or taking bold actions.

Amygdala

A small, almond-shaped cluster of nuclei located in the temporal lobe of the brain, implicated in the processing of emotions such as fear and pleasure.

Occipital Lobes

The region of the brain located at the back of the head, responsible for visual processing.