Identify the Correct Statement About Real and Nominal Gross Domestic

question 2

Multiple Choice

Identify the correct statement about real and nominal gross domestic product (GDP)

• A)In the base year, nominal GDP is equal to real GDP
• B)In periods of inflation, real GDP growth will tend to be greater than nominal GDP growth.
• C)If real GDP decreases and the price index also decreases, nominal GDP must have increased
• D)In periods of deflation, real GDP growth will tend to be lesser than nominal GDP growth.
• E)If real GDP increases and the price index also increases, nominal GDP must have decreased.

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Contractual Capacity

The legal ability to enter into a binding agreement.

Duty of Collaboration

An obligation for parties in a business relationship to work together in good faith to achieve mutual goals.

Duty of Indemnification

The obligation to compensate for harm or loss incurred by another party, typically outlined in a contract.

State Law

The body of law issued and enforced by a state government, distinct from federal or municipal law.