If Nominal GDP Is $10 Trillion and Real GDP Is

question 4

Multiple Choice

If nominal GDP is $10 trillion and real GDP is $8 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:

Net Price

The price of a good or service after all discounts, rebates, and allowances have been subtracted from the gross price.

S&P/TSX Index

The S&P/TSX Index is a stock market index that tracks the performance of the largest companies listed on the Toronto Stock Exchange in Canada.

Trade Discount

A reduction in the listed price of a product or service, offered by sellers to buyers in the same trade or industry.

Car Dealer

A business that specializes in selling new or used vehicles to consumers, often offering financing and trade-in options.