If Nominal GDP Increased by 11 Per Cent While Real

question 26

Multiple Choice

If nominal GDP increased by 11 per cent while real GDP increased by only 5 per cent, then:

• A) the price level must have increased by around 6 per cent
• B) the price level must have increased by around 16 per cent
• C) the price level remained steady but real output fell by around 6 per cent
• D) the unemployment rate must have fallen during the year

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Definitions:

Big Business

Large-scale corporate enterprises characterized by significant market power, vast resources, and complex organizational structures.

American Way of Life

A phrase that refers to the lifestyle and cultural norms of people living in the United States, often emphasizing freedom, democracy, and economic opportunity.

Communist Party of America

A political party in the United States that advocates for the principles of communism, emphasizing the collective ownership of means of production.

Unemployed Councils

Grassroots organizations established during the Great Depression to advocate for the rights and needs of unemployed workers.