Suppose Nominal GDP in 1996 Was $100 Billion and in 1998

question 24

Multiple Choice

Suppose nominal GDP in 1996 was $100 billion and in 1998 it was $260 billion.The general price index in 1996 was 100 and in 1998 it was 180.Between 1996 and 1998 the real GDP rose by:

• A) 160 percent.
• B) 44 percent.
• C) 37 percent.
• D) 12 percent.

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Definitions:

Flood Control System

Engineering and planning efforts designed to manage water flow and protect areas from flooding.

Expected Loss

The anticipated amount of loss in an investment, calculated as the probability of the loss occurring multiplied by the amount of the potential loss.

Coastal Town

A town located on or near a coast, often characterized by its relationship to the ocean and its impact on the local economy and culture.

Moral Hazard Problem

A situation in which one party engages in risky behavior knowing that it is protected against the consequences, usually by insurance or other safety nets.