If We Say That Two Variables Are Inversely Related, This

question 118

Multiple Choice

If we say that two variables are inversely related, this means that

• A) the two graph as an upsloping line.
• B) an increase in one variable is associated with a decrease in the other.
• C) an increase in one variable is associated with an increase in the other.
• D) the resulting relationship can be portrayed by a straight line parallel to the horizontal axis.

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Definitions:

Nominal GDP

The total worth of all end products and services generated inside a nation over a specific timeframe, valued at present market prices.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation).

GDP Deflator

An economic metric that converts the money-value measure of GDP from current prices to constant prices, enabling comparison of economic productivity and real growth over specific periods.

GDP Deflator

An economic metric that converts the money-value measure of GDP to an index for quantity comparison.