If nominal GDP exceeds real GDP for a specific year, then the GDP ...

[pepyto]

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

[kmb352]

Answer to Question 1

A

Answer to Question 2

D

[pepyto]

Excellent

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TYSM