If real GDP in 2016 (using 2009 prices) is lower than nominal GDP ...

[beccaep]

If real GDP in 2016 (using 2009 prices) is lower than nominal GDP of 2015, then
 
  A) prices in 2016 are higher than prices in 2015.
  B) prices in 2016 are lower than prices in 2015.
  C) real GDP in 2016 is larger than real GDP in 2015.
  D) nominal GDP in 2016 equals nominal GDP in 2015.

Question 2

Refer to Figure 2-2. The linear production possibilities frontier in the figure indicates that
 
  A) it is progressively more expensive to produce meat.
  B) Mendonca has a comparative disadvantage in the production of meat.
  C) the tradeoff between meat and vegetables is constant.
  D) Mendonca has a comparative advantage in the production of vegetables.

[kaylee05]

Answer to Question 1

B

Answer to Question 2

C

[beccaep]

TYSM

[flexer1n1]

Excellent