If Nominal GDP Is Declining,then It Must Be the Case

question 127

Multiple Choice

If nominal GDP is declining,then it must be the case that:

• A) fewer goods and services are being produced.
• B) prices must be lower on average.
• C) prices must be increasing more rapidly than production.
• D) prices are falling at a greater rate than production is rising.
• E) production is rising at a greater rate than prices are falling.

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Definitions:

Components

The constituent parts or elements that make up a system, device, or mechanism.

Closeness

denotes a feeling of intimacy or a strong bond between individuals, typically characterized by mutual respect, affection, and understanding.

Interdependence

A mutual reliance between two or more groups or individuals, where each party's welfare and benefits are reciprocally dependent upon the others'.

Mutuality

Partners’ acknowledgment that their lives are intertwined and thinking of themselves as a couple (“us”) instead of as two separate individuals (“me” and “you”).