If Real GDP Declines in a Given Year, Nominal GDP

question 72

Multiple Choice

If real GDP declines in a given year, nominal GDP:

• A) Must also be declining
• B) Must also be increasing
• C) May either rise or fall
• D) Is likely to remain constant

---

Definitions:

Correct Order

The arrangement of objects or actions in a sequence based on a specific rule or set of rules.

Stages

Distinct periods or phases in a process of development or a sequence of events.

Collective Unconscious

A concept in psychology proposed by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.

Latent Memory Traces

Subconscious remnants of experiences that have been encoded into long-term memory but are not currently active or retrievable.