Nominal GDP Is Less Than Real GDP in an Economy

question 137

Multiple Choice

Nominal GDP is less than real GDP in an economy in year 1 and year 2.In year 3, nominal GDP is equal to real GDP.In year 4, nominal GDP is slightly greater than real GDP.In year 5, nominal GDP is significantly greater than real GDP.Which year is most likely to be the base year being used to calculate the price index for this economy?

• A)2
• B)3
• C)4
• D)5

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Coup d'état

A sudden and decisive action in politics, especially one resulting in a change of government illegally or by force.

European Commission

An institution of the European Union responsible for proposing legislation, implementing decisions, upholding the EU treaties, and managing the day-to-day business of the EU.

Economic Strength

A measure of a country's or region's financial health and ability to withstand economic challenges, often assessed by GDP, employment rates, and other economic indicators.

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