If Nominal GDP Grew by 5 Percent and Real GDP

question 74

Multiple Choice

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

• A) 2
• B) 3
• C) 5
• D) 8

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Definitions:

Industry Structure

The characteristics and organization of an industry, including the number and size of companies, entry barriers, and level of competition.

Herfindahl Index

An economic measure of market concentration that sums the squares of the market shares of all firms within the industry.

Conglomerate Merger

A union of companies engaged in entirely different businesses, often to diversify portfolio risks and leverage managerial expertise across industries.

Antitrust Scrutiny

The examination and monitoring of companies and their practices by government agencies to ensure they do not engage in anti-competitive behavior, violating antitrust laws.