If Real GDP Is 5,100 and Nominal GDP Is 4,900,then

question 5

Multiple Choice

If real GDP is 5,100 and nominal GDP is 4,900,then the GDP deflator is

• A)104.1 so prices are higher than in the base year.
• B)104.1 so prices are lower than in the base year.
• C)96.1 so prices are higher than in the base year.
• D)96.1 so prices are lower than in the base year.

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Definitions:

Natural State

A condition or situation perceived as inherent and untouched by human influence, often referring to environments or human behavior.

Thomas Hobbes

A 17th-century English philosopher known for his work on political philosophy, especially as articulated in his book "Leviathan," where he discusses the structure of society and legitimate government.

Formal Social Structures

Organized and established social patterns and institutions that dictate behavior and relationships within a society.

Jean-Jacques Rousseau

An 18th-century philosopher known for his contributions to political philosophy, especially regarding concepts of social contract and the natural goodness of humanity.