The GDP price index
A) can be interpreted as 100 multiplied by real GDP divided by nominal GDP.
B) is the difference between nominal GDP and real GDP.
C) measures the average price level.
D) can be interpreted as real GDP minus nominal GDP and the resulting difference then multiplied by 100.
E) is equal to between real GDP minus nominal GDP.
Question 2
Which of the following can start an inflation?
A) an increase in aggregate demand
B) an increase in aggregate supply
C) a decrease in aggregate supply
D) Both answers A and C are correct.
E) Answers A, B, and C are correct.
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