If Nominal GDP Is $10 Trillion and Real GDP Is

question 4

Multiple Choice

If nominal GDP is $10 trillion and real GDP is $8 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:

Sternum

A long flat bone located in the center of the chest, connecting the ribs together and providing support.

Scapula

A flat, triangular bone located in the upper back on each side of the body, commonly known as the shoulder blade.

Tarsal Bone

One of the seven bones that make up the ankle and back part of the foot.

Heel Bone

Also known as the calcaneus, it is the large bone forming the foundation of the rear part of the foot.