Use the following figure to answer the questions : Figure 5.1 : According to the hypothetical economy in
-during the period between the early 1970s and 1980,real GDP grew at a faster rate than nominal GDP.This is an indication that

Question

Use the following figure to answer the questions : Figure 5.1 :  According to the hypothetical economy in 
-during the period between the early 1970s and 1980,real GDP grew at a faster rate than nominal GDP.This is an indication that

Quizplus · Accepted Answer

When real GDP grows faster than nominal GDP, it indicates that the average price levels have decreased, as real GDP is adjusted for inflation while nominal GDP is not.

Use the Following Figure to Answer the Questions : Figure