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A Country Reported a Nominal GDP of $85 Billion in 2007

question 57

Multiple Choice

A country reported a nominal GDP of $85 billion in 2007 and $100 billion in 2006, and reported a GDP deflator of 100 in 2007 and 105 in 2006. What happened to real output and prices from 2006 to 2007?


Definitions:

365-Day Year

A method of calculating interest that uses a fixed calendar year of 365 days for computations, commonly used in financial contexts.

Exact Simple Interest

Interest calculation method using a 365-day year that does not account for the effect of compounding.

365-Day Year

A method used for calculating interest based upon a calendar year, counting all 365 days (or 366 in a leap year), typically used for more precise financial calculations.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or deposit, based on a simple calculation without compounding.

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