Which of the Following Could Cause Nominal GDP to Decrease

question 79

Multiple Choice

Which of the following could cause nominal GDP to decrease next year,but real GDP to increase?

• A)The price level rises and the quantity of final goods and services produced rises.
• B)The price level falls and the quantity of final goods and services produced rises.
• C)The price level rises and the quantity of final goods and services produced falls.
• D)The price level falls and the quantity of final goods and services produced falls.

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Definitions:

Federal Bankruptcy Exemptions

Legal provisions that allow individuals filing for bankruptcy to retain certain assets and properties from creditor claims under federal law.

Motor Vehicle Exemption

A provision in bankruptcy law that allows an individual to keep a vehicle up to a certain value as exempt from seizure by creditors.

Federal Bankruptcy Exemptions

Provisions allowing an individual to exempt certain types of property from the bankruptcy estate, thus protecting them from being seized to pay off creditors under federal bankruptcy law.

Liquidation

The process of closing a business and distributing its assets to claimants, typically occurring when a company is insolvent.