Which of the Following Could Cause Nominal GDP to Increase,but

question 159

Multiple Choice

Which of the following could cause nominal GDP to increase,but real GDP to decrease?

• A)The price level rises and the quantity of final goods and services produced rises.
• B)The price level rises and the quantity of final goods and services produced falls.
• C)The price level falls and the quantity of final goods and services produced rises.
• D)The price level falls and the quantity of final goods and services produced falls.

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Definitions:

Appraisal Rights

Legal rights that allow shareholders to have their shares appraised and obtain payment of the fair value in certain transactions, such as mergers or consolidations.

Statutory Procedures

Legal processes and methods prescribed by statute that govern how rights, responsibilities, and obligations are to be executed and enforced.

Short-Form Merger

A merger process requiring less formal procedure, often used when a parent company merges with a subsidiary.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and certain rights within the company.