When Real GDP Declines in a Particular Year, Nominal GDP

question 138

Multiple Choice

When real GDP declines in a particular year, nominal GDP:

• A)​will decline at a faster rate than real GDP if there is inflation.
• B)​will decline at a slower rate than real GDP if there is inflation.
• C)​may increase or decrease if there is inflation.
• D)​will increase if there is deflation.

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Definitions:

Motivation

The method that starts, directs, and sustains actions aimed at achieving goals.

Needs-Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love, esteem, and self-actualization, in that order.

21st Century

The period extending from January 1, 2001, to December 31, 2100, characterized by rapid advancements in technology, globalization, and changing social norms.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.