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.

---

Definitions:

Functional Autonomy

A principle in psychology where behaviors once initiated by a certain stimulus continue independently of the original motive.

Psychosexual Conflicts

In Freudian theory, struggles in the mind of a child that occur during one of the five psychosexual stages, leading to various forms of psychological distress.

Proprium

Allport’s term for the ego or self.

Instinctual Forces

The innate impulses and drives that influence human behavior and decision-making, often rooted in the need for survival, reproduction, and pleasure.