If Real GDP Equals $200 Billion This Year and Nominal

question 106

Multiple Choice

If real GDP equals $200 billion this year and nominal GDP equals $300 billion,the price level since the base year has increased

• A)$100 billion
• B)$200 billion
• C)50 percent
• D)100 percent
• E)33 percent

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Definitions:

Nominal Data

Data classified into distinct categories according to specified characteristics that cannot be ordered in a meaningful way.

Qualitative

Relating to, measuring, or measured by the quality of something rather than its quantity.

Categorical

Pertaining to data that can be divided into specific groups or categories that lack a natural ordering.

Nominal Variable

A type of variable that represents categories with no intrinsic ordering or ranking among them, used for classification or grouping.