If Nominal GDP Is $12 Trillion and Real GDP Is

question 41

Multiple Choice

If nominal GDP is $12 trillion and real GDP is $10 trillion,then the GDP deflator is

• A)83.33,and this indicates that the price level has decreased by 16.67 percent since the base year.
• B)83.33,and this indicates that the price level has increased by 83.33 percent since the base year.
• C)120,and this indicates that the price level has increased by 20 percent since the base year.
• D)120,and this indicates that the price level has increased by 120 percent since the base year.

---

Definitions:

Paradoxical Heat

A sensation of burning heat felt when a cold stimulus is applied to a specific area of the skin, typically due to nerve damage.

Encapsulated End Organs

Sensory receptors surrounded by capsule structures that are sensitive to pressure and vibration.

Frequency Theory

A theory in hearing that suggests the frequency of a sound is coded by the frequency of the neural impulses traveling up the auditory pathway.

Basilar Membrane

A crucial structure within the cochlea of the inner ear, it oscillates in response to sound, enabling the perception of different frequencies.