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According to the Hypothetical Economy in Figure 5

Question 49

Multiple Choice

According to the hypothetical economy in Figure 5.1,between 1960 and 1970 real GDP declined but nominal GDP continued to rise.The increase in nominal GDP was due to A) An increase in the price level greater than the decrease in output,causing the nominal dollar value of output produced to increase. B) An increase in the quantity of output produced. C) A decrease in the price level. D) An increase in the standard of living. According to the hypothetical economy in Figure 5.1,between 1960 and 1970 real GDP declined but nominal GDP continued to rise.The increase in nominal GDP was due to


A) An increase in the price level greater than the decrease in output,causing the nominal dollar value of output produced to increase.
B) An increase in the quantity of output produced.
C) A decrease in the price level.
D) An increase in the standard of living.

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