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

A variable in an experiment or study whose changes depend on the manipulation of the independent variable.

Interaction Effect

A situation in statistical analysis where the effect of one independent variable on the dependent variable is different at different levels of another independent variable.

Main Effect

The effect of an independent variable on a dependent variable, isolated from other variables in an experimental study.

Simple Effect

The effect of one independent variable at a particular level of another independent variable in a factorial design.