If for a Given Year Nominal GDP Is $2,000 Billion

question 236

Multiple Choice

If for a given year nominal GDP is $2,000 billion and real GDP is $1,500 billion,then the GDP price index is

• A)133.
• B)1.33.
• C)100.
• D)0.75.
• E)750.

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Definitions:

Excessive Spending

The act of spending funds beyond what is considered reasonable or sustainable, often leading to financial imbalances.

Current Account

A component of a country's balance of payments that includes the trade balance, net income from abroad, and net current transfers, reflecting the difference between a nation's savings and its investment.

Billion

A number equal to a thousand million (1,000,000,000) in the short scale, or a million million (1,000,000,000,000) in the long scale, depending on the country.

Balance Of Trade

The difference in value between a country's imports and exports over a period of time.