Suppose That GDP Increases in 1999 but Real GDP Decreases

question 44

Multiple Choice

Suppose that GDP increases in 1999 but real GDP decreases during the year.It can be concluded that

• A)output declined in 1999.
• B)the price level fell in 1999.
• C)inflation was zero in 1999.
• D)output increased in 1999.

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Definitions:

Purchasing Power

A currency's value determined by the volume of goods or services that can be bought with one monetary unit.

Federal Budget

The annual financial statement presenting the government's proposed revenues and spending for a fiscal year.

Tax Burden

The total amount of taxes that individuals, businesses, or other entities are required to pay, often expressed as a percentage of income or GDP.

Direct Taxes

Taxes that are paid directly to the government by the taxpayer, such as income tax and property tax.