If Nominal GDP Is $8 Trillion and Real GDP Is

question 21

Multiple Choice

If nominal GDP is $8 trillion and real GDP is $10 trillion,then the GDP deflator is

• A)80,and this indicates that the price level has decreased by 20 percent since the base year.
• B)80,and this indicates that the price level has increased by 80 percent since the base year.
• C)125,and this indicates that the price level has increased by 25 percent since the base year.
• D)125,and this indicates that the price level has increased by 125 percent since the base year.

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Definitions:

Depositors

Individuals or entities who place their money in a bank for safekeeping and earn interest over time.

Gramm-Leach-Bliley Act

A U.S. federal law enacted in 1999 that allows financial institutions to offer a broader range of services, including banking, securities, and insurance.