If Nominal GDP Is $12 Trillion and Real GDP Is

question 41

Multiple Choice

If nominal GDP is $12 trillion and real GDP is $10 trillion,then the GDP deflator is

• A)83.33,and this indicates that the price level has decreased by 16.67 percent since the base year.
• B)83.33,and this indicates that the price level has increased by 83.33 percent since the base year.
• C)120,and this indicates that the price level has increased by 20 percent since the base year.
• D)120,and this indicates that the price level has increased by 120 percent since the base year.

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Definitions:

Political Parties

Organized groups of people with similar political aims and opinions, that seek to influence public policy by getting their candidates elected to public office.

Presidential Cabinet

A body of advisors to the President of the United States, composed of the heads of the executive departments.

Political Divisions

Refers to the differences in political opinions that exist within a society, often leading to varying political parties and ideologies.

Alexander Hamilton

A Founding Father of the United States known for being an influential interpreter and promoter of the U.S. Constitution, as well as the founder of the nation's financial system.