If Nominal GDP Doubles and the GDP Deflator Doubles,then Real

question 38

Multiple Choice

If nominal GDP doubles and the GDP deflator doubles,then real GDP

• A)remains constant.
• B)doubles.
• C)triples.
• D)quadruples.

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Definitions:

Leisure

Time spent away from work and essential domestic activities, often used for rest, recreation, or cultural pursuits.

Inferior Good

A type of good for which demand decreases when consumer income rises, in contrast to normal goods, where demand increases with rising income.

Consumer Income

The total amount of income earned by consumers in an economy, including wages, salaries, benefits, and other income sources, influencing their buying power.

Demand Curve

A graph that shows the relationship between the price of a good and the quantity demanded by consumers at various prices.