If nominal GDP rose by 10 percent and the price index increased from 100 to 105 in a given year, real GDP:
a. rose by 15 percent
b. rose by roughly 9.5 percent.
c. rose by 5 percent.
d. fell by 5 percent.
c
You might also like to view...
Which of the following would cause a movement along the supply curve for cupcakes?
a. an improvement in technology for commercial mixers b. a decrease in the price of cupcakes c. an increase in the price of cake flour d. All of the above are correct.
A headline reads: "Economy Sinks Deeper into Recession." The type of unemployment most closely associated with this economic condition would be:
a. Search b. Structural c. Frictional d. Cyclical
The greater part of the money assets traded in foreign exchange markets is demand deposits in banks.
Answer the following statement true (T) or false (F)
The assumption of rational behavior:
A. offers a perfect framework for how people actually behave. B. helps economists explain about how people behave in a way that will best achieve their goals. C. is best applied to psychology and should not be used in the science of economics. D. explains why people voluntarily engage in decisions for which costs exceed benefits.