If in Some Year Nominal GDP Was $20 Billion and the GDP

question 28

Multiple Choice

If in some year nominal GDP was $20 billion and the GDP deflator was 50,what was real GDP?

• A)$2.5 billion.
• B)$10 billion.
• C)$40 billion.
• D)$100 billion.

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Definitions:

Insurance

A financial product that provides protection against losses or damages to a person or property in exchange for premium payments.

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, often leading to a poor outcome for the less informed party.

Insurance

A financial product sold by insurance companies to safeguard against financial loss in the event of specific contingencies or risks.

Risk Lover

An individual or entity that prefers or is willing to undertake actions with a higher level of uncertainty or risk.