The relationship between real GDP and nominal GDP can be expressed by:
A. real GDP = nominal GDP + inflation.
B. percent change in real GDP = percent change in nominal GDP + inflation.
C. percent change in real GDP = percent change in nominal GDP - inflation.
D. real GDP = nominal GDP - inflation.
Answer: C
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The practice of a firm setting a price so low that all firms incur losses is called
a. a tournament. b. predatory pricing. c. a buy-out strategy. d. a contestable market.
Cyclical unemployment includes people who become unemployed from
A) normal labor market turnover. B) changes in the seasons. C) changes in international competition. D) technological changes. E) changes in the business cycle.
The decline in investment spending accounts for how much of the decline in output during a recession?
a) one-third b) one-seventh c) two-sevenths d) two-thirds
As the international value of the dollar rises, AS shifts outward and AD shifts inward.
Answer the following statement true (T) or false (F)