Nominal GDP Is $10,000 Billion in 2011, but Real GDP

question 90

Multiple Choice

Nominal GDP is $10,000 billion in 2011, but real GDP is only $9,000. It follows that:

• A)​the GDP deflator is equal to 111.
• B)​the GDP deflator is equal to 100.
• C)​the GDP deflator is equal to 90.
• D)​prices must have decreased relative to the base year.

---

Definitions:

Data Collection

The process of gathering and measuring information on targeted variables to answer relevant questions and evaluate outcomes.

Natural Experiment

An empirical study in which individuals or groups are exposed to conditions that are determined by nature or by other factors outside the control of the researchers.

Confounding Variables

External factors that can affect the results of an experiment or study by being intertwined with the independent variable.

Correlational Study

Research design intended to discover whether a statistical relationship between variables exists.