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If Nominal GDP Increased from $4 Billion to $5 Billion

Question 135

Multiple Choice

If nominal GDP increased from $4 billion to $5 billion while real GDP increased from $3 billion to $4 billion, it follows that:


A) the price level and real output increased at the same rate.
B) real output rose and price level fell.
C) the price level increased at a faster rate than real output.
D) the price level rose by 25%.

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