$$\begin{array} { | c | c | c | }
\hline \text { Year } & \text { Nominal GDP } & \text { Price Index } \
\hline 1 & \$ 550 & \$ 140 \
\hline 2 & 560 & 135 \
\hline 3 & 576 & 120 \
\hline 4 & 586 & 117 \
\hline 5 & 604 & 108 \
\hline
\end{array}$$ The economy described in the table has experienced a
A) declining nominal GDP.
B) rising price level.
C) declining real GDP.
D) rising real GDP.

Question

$$\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Nominal GDP } & \text { Price Index } \
\hline 1 & \$ 550 & \$ 140 \
\hline 2 & 560 & 135 \
\hline 3 & 576 & 120 \
\hline 4 & 586 & 117 \
\hline 5 & 604 & 108 \
\hline
\end{array}$$ The economy described in the table has experienced a
A) declining nominal GDP.
B) rising price level.
C) declining real GDP.
D) rising real GDP.

Quizplus · Accepted Answer

Real GDP has increased from 2005 to 2007, indicating economic growth. The table does not provide information on the price level, and nominal GDP is not a reliable indicator of economic growth as it includes the effects of inflation.

The Economy Described in the Table Has Experienced a A)

The Economy Described in the Table Has Experienced a
A)