A Country Reported a Nominal GDP of $85 Billion in 2010

question 10

Multiple Choice

A country reported a nominal GDP of $85 billion in 2010 and $100 billion in 2009.It also reported a GDP deflator of 100 in 2010 and 105 in 2009.Between 2009 and 2010,

• A)real output and the price level both rose.
• B)real output rose and the price level fell.
• C)real output fell and the price level rose.
• D)real output and the price level both fell.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, in contrast to a normal good.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent.

Utility Levels

Measures of satisfaction or happiness that consumers derive from consuming goods and services.

Indifference Curve

A graph representing different bundles of goods between which a consumer is indifferent, showing preferences.