When Real GDP Declines in a Particular Year, Nominal GDP

question 138

Multiple Choice

When real GDP declines in a particular year, nominal GDP:

• A)​will decline at a faster rate than real GDP if there is inflation.
• B)​will decline at a slower rate than real GDP if there is inflation.
• C)​may increase or decrease if there is inflation.
• D)​will increase if there is deflation.

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Definitions:

Principal

A principal can refer to the main party involved in a financial transaction or the original amount of a debt or investment before interest.

Wrongful Acts

Actions or behaviors that are illegal or immoral, leading to harm or injury against another person or entity.

Agent

An individual or entity authorized to act on behalf of another (the principal) in dealings with third parties.

Register

is to officially record or enroll something or someone's details in a formal list or database.