Multiple Choice
In Figure 5.1,during the period between the early 1970s and 1980,real GDP grew at a faster rate than nominal GDP.This is an indication that
A) Average price levels decreased.
B) Production increased at a faster rate than average price increased.
C) Production increased at a slower rate than average price increased.
D) Average price levels increaseD.Nominal GDP can grow more slowly than real GDP if the prices are falling and production is rising; the economy is actually doing well,but nominal GDP suggests it is not.
Correct Answer:
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