If GDP Increases Faster Than the GDP Deflator

question 258

Multiple Choice

If GDP increases faster than the GDP deflator,

• A)real GDP will rise.
• B)real GDP will fall.
• C)real GDP will stay the same.
• D)There is not enough information to determine what happens to real GDP.

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Definitions:

Dependent Variable

The determined variable in a causal relationship.

Independent Variable

The variable in an experiment or study that is manipulated or changed to observe its effect on a dependent variable.

Slope

In the field of mathematics, the slope is determined by the steepness or angle of elevation of a line, calculated as the ratio between the vertical and horizontal differences of two points on the line.

Positively Related

A relationship in which two variables move in the same direction; as one increases, the other also increases.