If a Price Index Rises from One Year to the Next

question 25

Multiple Choice

If a price index rises from one year to the next:

• A)all prices must be rising
• B)nominal GDP must be rising
• C)real GDP must be rising
• D)real GDP must be falling
• E)some individual prices may fall or stay the same, and nominal or real GDP may fall or stay the same

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Definitions:

Evaluate

The process of calculating the value of an expression.

Calculate

To ascertain by mathematical methods; to solve or compute.

Verify

To check or test the accuracy, truth, or quality of something.

Verify

To confirm the accuracy, truth, or validity of something through examination or comparison.