Which of the Following Could Cause Nominal GDP to Increase,but

question 159

Multiple Choice

Which of the following could cause nominal GDP to increase,but real GDP to decrease?

• A)The price level rises and the quantity of final goods and services produced rises.
• B)The price level rises and the quantity of final goods and services produced falls.
• C)The price level falls and the quantity of final goods and services produced rises.
• D)The price level falls and the quantity of final goods and services produced falls.

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Definitions:

Continental Army

The army raised by the American colonies during the American Revolutionary War with George Washington as its commanding general.

Military Power

The strength and capability of a country's armed forces to defend its interests and maintain national security.

Navy

A branch of a nation's armed forces designated for naval warfare, primarily responsible for naval and amphibious operations.

Enlistments

The act of signing up for duty in the armed forces voluntarily.