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Let Nominal GDP Change from $10,000 Billion to $11,000 Billion

Question 1

Multiple Choice

Let nominal GDP change from $10,000 billion to $11,000 billion over the course of one year. If prices have increased uniformly by 5 percent over the same year, real GDP


A) has remained unchanged.
B) has increased by 5 percent.
C) has increased by 15 percent.
D) has increased by 10 percent.
E) has decreased by 10 percent.

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