If in Some Year Nominal GDP Was $18 Billion and the GDP

question 19

Multiple Choice

If in some year nominal GDP was $18 billion and the GDP deflator was 120,what was real GDP?

• A)$6.7 billion.
• B)$15 billion.
• C)$21.6 billion.
• D)$38 billion.

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Definitions:

Purchasing Power

The worth of a currency depicted by how many goods or services can be purchased with one unit of it.

Fiscal Policy

Fiscal Policy involves government spending and taxation decisions aimed at influencing a country’s economic activity.

Monetary Policy

The process by which the central bank or monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Supply-Side Policy

Economic policies aimed at increasing production and supply through incentives for investment, workforce expansion, and technological improvements.