When real GDP declines in a particular year, nominal GDP:
a. will decline at a faster rate than real GDP if there is inflation.
b. will decline at a slower rate than real GDP if there is inflation.
c. may increase or decrease if there is inflation
d. will increase if there is deflation.
c
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Keynesian economics refers to the perspective that the business cycle represents
A) equilibrium. B) disequilibrium. C) long-run macroeconomic fluctuations. D) short-run macroeconomic stability.
Exhibit 10-3 A monopolistic competitive firm in the long run
To maximize long-run profits, the monopolistically competitive firm shown in Exhibit 10-3 will charge a price per unit of:
A. zero. B. $10 C. $20. D. $30.
When the relationship between two variables changes,
A. The curve becomes linear. B. There is movement from one point on the curve to another point on the curve. C. The entire curve shifts. D. All of the choices are correct.
The price index that measures the prices of goods and services purchased by firms is called the:
A. CPI. B. PPI. C. RPI. D. PRI.