If Nominal GDP Rises from $5 Billion to $6 Billion

question 57

Multiple Choice

If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 130, real GDP

• A)​rises.
• B)​falls.
• C)​stays the same.
• D)​could either be rising or falling.

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Definitions:

Creditors

Individuals or institutions that lend money or extend credit, and are owed repayment by debtors.

Debtors

Persons or entities that owe money to another individual or entity, typically as a result of borrowing funds.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.

Clerk Of Courts

The Clerk of Courts is a public official responsible for managing the records of court cases and related documents, and often oversees administrative duties in the court system.