Table 12-16
$\begin{array}{|l|c|c|}
\hline & \mathbf{2 0 1 7} & \mathbf{2 0 1 8} \
\hline \text { Nominal GDP } & \$ 10,000 & \$ 12,000 \
\hline \text { Real GDP } & 9,500 & 10,500 \
\hline
\end{array}$
-Refer to Table 12-16.Given the information above,what can we say has happened in the economy from 2017 to 2018?

Question

Table 12-16
 $\begin{array}{|l|c|c|}
\hline & \mathbf{2 0 1 7} & \mathbf{2 0 1 8} \
\hline \text { Nominal GDP } & \$ 10,000 & \$ 12,000 \
\hline \text { Real GDP } & 9,500 & 10,500 \
\hline
\end{array}$
-Refer to Table 12-16.Given the information above,what can we say has happened in the economy from 2017 to 2018?

Quizplus · Accepted Answer

We can determine that the nominal GDP has increased from \$10,000 to \$12,000, indicating an increase in the overall value of goods and services produced in the economy. However, the real GDP has only increased from \$9,500 to \$10,500, indicating that the increase in nominal GDP is partially due to an increase in prices. Therefore, we can conclude that the price level has risen.

Table 12-16 -Refer to Table 12-16