If real GDP increases and the price index also increases:
a. nominal GDP must also have risen
b. nominal GDP must have fallen.
c. nominal GDP could have either risen or fallen.
d. the percentage increase in nominal GDP must have been greater than the percentage increase in the price level.
a
You might also like to view...
There is a negative relationship between the real rate of interest and investment spending
Indicate whether the statement is true or false
The exchange rate is
A) the price of one currency relative to gold. B) the value of a currency relative to inflation. C) the change in the value of money over time. D) the price of one currency relative to another.
An inflationary gap exists when:
A. output exceeds aggregate demand. B. aggregate demand exceeds output. C. potential output exceeds actual output. D. actual output exceeds potential output.
Which component of federal spending is included in GDP?
A. net exports B. transfer payments C. government purchases D. capital supply