If Real GDP and the GDP Deflator Both Rise, Then

question 61

True/False

If real GDP and the GDP deflator both rise, then it must be that nominal GDP rose.

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Definitions:

Probability

A quantitative assessment of an event's chances of happening, with values from 0 to 1 indicating the likelihood.

Utility Function

(Of an individual) the total utility generated by an individual’s consumption bundle.

Risk-Averse

A characteristic of individuals who prefer certain outcomes over others with equal or potentially higher expected returns but with more uncertainty.

Income

The financial gain earned or received by an individual or entity, usually through work, investments, or other forms of economic activities.