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If Nominal GDP Increased by 11 Percent During a Year

Question 72

Multiple Choice

If nominal GDP increased by 11 percent during a year while real GDP increased by only 5 percent, then the


A) price level decreased by 6 percent.
B) unemployment rate fell during the year.
C) price level remained steady but real output fell by 6 percent.
D) price level increased by 16 percent.
E) price level increased by 6 percent.

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