If Nominal GDP Changed by 6% and the Price Level

question 43

Multiple Choice

If nominal GDP changed by 6% and the price level changed by 2%,then real GDP changed by:

• A) 4%.
• B) 3%.
• C) 8%.
• D) 12%.
• E) 6%.

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Definitions:

Medicare

A federal health insurance program in the United States for people aged 65 and older, as well as for some younger people with disabilities.

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Federal Depository Bank

A financial institution where the government keeps its money and manages its financial transactions.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at banks and thrifts in the event of bank failures.