Japan experienced periods of deflationa declining price levelduring the 1990s. During a deflationary period, which would be higher: nominal GDP or real GDP? Why? Assume that the base year of choice is prior to the deflationary period.
What will be an ideal response?
Question 2
A Gini coefficient of ________ means that an income distribution is perfectly equal and a Gini coefficient of ________ means the income distribution is perfectly unequal.
A) 1; 0 B) 0, 100 C) 100, 0 D) 0; 1