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.

---

Definitions:

Interactions

Exchanges or communications between components in a program or between users and programs.

Remainder Operator

An operator (usually %) used in programming to compute the remainder of the division of two numbers.

Integer Division

The process of dividing two integers resulting in an integer quotient, discarding any remainder.

Scientific Notation

A way of expressing numbers that are too big or too small to be conveniently written in decimal form, using powers of 10.