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If Nominal GDP Grows by 3% and the GDP Deflator

question 184

True/False

If nominal GDP grows by 3% and the GDP deflator grows by 2%,then real GDP must grow by 5%.


Definitions:

Transferable

The characteristic of an asset or a legal right that allows it to be legally transferred or assigned from one party to another.

Warrants

Legal documents issued by a court or government authority that give law enforcement the power to perform certain actions, such as arrests or searches; also refers to financial instruments granting the right to purchase stock at a specified price.

De Facto Corporation

A business entity that operates like a corporation without formal incorporation status, but is treated as a corporation by law under certain conditions.

Incorporation Statute

Laws and regulations governing the process of establishing a corporation and outlining its legal status and structure.

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