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If Jim Pays $1000 to John

Question 124

Multiple Choice

If Jim pays $1000 to John:


A) ​GDP will increase by $1000.
B) ​GDP will increase, but we cannot determine by what amount.
C) ​nominal GDP will increase, but we cannot be sure if real GDP will increase or decrease.
D) ​we need more information in order to determine whether or how much GDP will change.

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