When Nominal GDP Is Less Than Real GDP It Means

question 97

Multiple Choice

When nominal GDP is less than real GDP it means

• A) prices have risen since the year we use as a standard for constant prices.
• B) the population has increased.
• C) prices have fallen since the base year.
• D) the population has decreased.
• E) there is a mistake because nominal GDP can never be less than real GDP.

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Definitions:

Cellulose

A complex carbohydrate, and major component of plant cell walls, that provides structural support to plants.

Digestive Enzymes

Proteins secreted by the digestive tract that catalyze the breakdown of food into smaller absorbable components.

Roughage

Dietary fiber found in fruits, vegetables, and whole grains that aids in digestion and prevents constipation.

Kilocalorie

A unit of energy equivalent to 1000 calories, commonly used to express the energy content of food.