If Real GDP in 2017 (Using 2007 Prices)is Lower Than

question 45

Multiple Choice

If real GDP in 2017 (using 2007 prices) is lower than nominal GDP of 2016, then

• A)prices in 2017 are lower than prices in 2016.
• B)nominal GDP in 2017 equals nominal GDP in 2016.
• C)prices in 2017 are higher than prices in 2016.
• D)real GDP in 2017 is larger than real GDP in 2016.
• E)the economy is going through a recession.

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Definitions:

Behavioral Patterns

Regularities in the behavior of individuals or groups, often studied in psychology and economics to predict responses to stimuli or decisions.

Arbitrage Activity

The practice of buying and selling equivalent assets in different markets to exploit price discrepancies for a risk-free profit.

Sentiment Indicator

A measure used to gauge the general sentiment of investors or consumers, often derived from surveys or market data.

Short Interest

The complete count of shares from a specific stock, which are currently short sold by investors and remain uncovered or unsettled.