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

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Definitions:

Perfect Tender Rule

This rule allows buyers to reject goods that do not precisely meet the quality, quantity, and delivery terms specified in the contract.

Minor Flaws

Small defects or imperfections that do not significantly affect the overall functionality or value of an item.

Rigidity

The quality of being unable to bend or be forced out of shape; not flexible.

Course of Performance

The course of performance is an examination of parties' behavior in fulfilling a contract, used to interpret ambiguous terms or determine contractual intent.