When Nominal GDP Is Greater Than Real GDP It Means

question 275

Multiple Choice

When nominal GDP is greater 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 year we use as a standard for constant prices.
• D) the population has decreased.
• E) there is a mistake because nominal GDP can never be greater than real GDP.

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Definitions:

Social Capital

The networks, relationships, and norms that facilitate collective action and contribute to the social and economic effectiveness of a society or group.

Strong Relationships

Connections between individuals or entities characterized by trust, mutual respect, and often a long history of working or being together.

Group Attractiveness

The appeal of a group to its members, which can influence cohesion, the desire to join or remain part of the group, and member satisfaction.

Competition For Membership

Describes a situation where individuals or entities compete to gain entry or acceptance into an exclusive or desirable group or organization.