If Nominal GDP Is $12,000 and the GDP Deflator Is

question 122

True/False

If nominal GDP is $12,000 and the GDP deflator is 80, then real GDP is $15,000.

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Definitions:

Unemployment Rate

The percentage of people in the labor force who are not currently employed but are seeking work.

Labor Force

The total number of people who are eligible and willing to work, including both employed and unemployed individuals.

Recovery Phase

A period in the economic cycle where economic activity picks up and grows, following a recession or slowdown.

Business Cycle

The fluctuation of economic activity over time, including periods of expansion, peak, recession, and recovery.