The Data Below Show Data for Germany Including Real GDP

question 179

Multiple Choice

The data below show data for Germany including real GDP (in billions of euros) and the price level. $$\begin{array} { | c | c | c | } \hline & \text { Real GDP } & \text { Price Level } \\\hline 2002 & 2088 & 102.6 \\\hline 2003 & 2083 & 103.6 \\\hline 2004 & 2105 & 106 \\\hline 2005 & 2121 & 108.2 \\\hline 2006 & 2182 & 109.7 \\\hline 2007 & 2237 & 109.5 \\\hline\end{array}$$
In which of the following year(s) did Germany experience inflation?

• A) 2003, 2004, 2005 and 2006
• B) 2006 and 2007
• C) 2007
• D) 2002, 2005 and 2006 only

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price point, at a specific time.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product.

Market Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that all consumers in a market are willing to purchase at each price level.