If Prices in the Current Year Are Higher on Average

question 37

Multiple Choice

If prices in the current year are higher on average than in the base year, real GDP in the current year ________ nominal GDP in the current year.

• A)is greater than
• B)is less than
• C)is equal to
• D)could be greater than or less than

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Definitions:

Locus of Causality

Refers to where individuals attribute the cause of events, either internally (to themselves) or externally (to the situation or others).

Correspondent Inference

A theory suggesting that people make inferences about a person's dispositional attributes based on observed behaviors, especially when those behaviors have socially unexpected consequences.

Stability of Causation

A principle suggesting that causal relationships remain consistent across different contexts and times.

Fixed Versus Incremental Attribution

Theories that explain how people perceive their ability to change (incremental) versus viewing their abilities as static (fixed).