If Nominal GDP Is $8 Trillion and Real GDP Is

question 21

Multiple Choice

If nominal GDP is $8 trillion and real GDP is $10 trillion,then the GDP deflator is

• A)80,and this indicates that the price level has decreased by 20 percent since the base year.
• B)80,and this indicates that the price level has increased by 80 percent since the base year.
• C)125,and this indicates that the price level has increased by 25 percent since the base year.
• D)125,and this indicates that the price level has increased by 125 percent since the base year.

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Definitions:

Arboreal

Relating to or resembling a tree or life in the trees; often used to describe animals that live in trees.

Diurnal

Active during the day and at rest at night.

Hominoids

A term referring to the group of primates that includes all the great apes and humans.

Lemurs

A group of primates known for their large eyes and tail, native exclusively to the island of Madagascar and surrounding areas. They are noted for their diverse species and ecological roles in their habitats.