Multiple Choice
In Figure 5.2,the fact that real GDP is greater than nominal GDP during the 1960-1980 periods implies that
A) Average price levels during this period must have been lower than during the base period.
B) Per capita GDP must have increased.
C) Average price levels must have decreased during this period.
D) Production must have decreased during this perioD.Nominal GDP will differ from real GDP because nominal GDP does not control for changes in the price level.
Correct Answer:
Verified
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