If Nominal GDP Increased by 5 Percent and the GDP

question 75

Multiple Choice

If nominal GDP increased by 5 percent and the GDP deflator increased by 3 percent, then real GDP ______ by ______ percent.

• A) increased; 2
• B) decreased; 2
• C) increased; 8
• D) decreased; 8

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Definitions:

Significance Level

Another term for level of significance, it represents the probability of rejecting the null hypothesis when it is actually true, typically denoted by alpha (α).

Standard Deviation

A statistical metric that quantifies the dispersion or variability of a dataset relative to its mean.

Significance Level

A threshold below which a p-value indicates that the null hypothesis can be rejected.

Standard Deviation

A statistic that quantifies the dispersion or spread of a set of data points around their mean value, highlighting variability within the data set.