Author Question: If nominal GDP exceeds real GDP for a specific year, then the GDP deflator must be A) greater ... (Read 91 times)

pepyto · **on:** Jun 29, 2018

If nominal GDP exceeds real GDP for a specific year, then the GDP deflator must be

A) greater than 100. B) less than 100. C) equal to 100. D) less than 0.

Question 2

Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect.

Compared to no supply-side effect, including a supply-side effect for the decrease in tax rates will cause the price level to increase ________ and real GDP to increase ________.
A) more; less B) less; less C) more; more D) less; more