If Nominal GDP Is $8 Trillion and Real GDP Is

question 21

Multiple Choice

If nominal GDP is $8 trillion and real GDP is $10 trillion,then the GDP deflator is

• A)80,and this indicates that the price level has decreased by 20 percent since the base year.
• B)80,and this indicates that the price level has increased by 80 percent since the base year.
• C)125,and this indicates that the price level has increased by 25 percent since the base year.
• D)125,and this indicates that the price level has increased by 125 percent since the base year.

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Definitions:

Cortical Arousal

The state of being awake and responsive to stimuli, involving activation of the cerebral cortex, a part of the brain involved in processing sensory information, thinking, and perception.

Extraversion

Refers to a personality trait characterized by outward-directed energies, enthusiasm, talkativeness, assertiveness, and high levels of activity.

Neuroticism

A personality trait characterized by the tendency to experience negative emotions, such as anxiety, sadness, and anger, more frequently and intensely than others.

Quick Temper

A personality trait characterized by rapid onset of anger or irritation in response to triggers, often with little provocation.