If Nominal GDP Increased by 5 Percent and the GDP

question 75

Multiple Choice

If nominal GDP increased by 5 percent and the GDP deflator increased by 3 percent, then real GDP ______ by ______ percent.

• A) increased; 2
• B) decreased; 2
• C) increased; 8
• D) decreased; 8

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Definitions:

Four Actions Grid

A strategic tool used in blue ocean strategy to redefine the value proposition by determining what to eliminate, reduce, raise, and create.

Blue Ocean Strategy

A business strategy that focuses on creating a new market space (or "Blue Ocean") that is uncontested and makes competition irrelevant.

Four Actions Grid

A strategic tool used in the Blue Ocean Strategy framework that helps businesses to determine new opportunities by asking four questions: What to eliminate, reduce, raise, and create.

Blue Ocean Strategy

A business theory that suggests companies are better off searching for ways to gain "uncontested market space" rather than competing with similar companies.