Author Question: If prices have increased since the base period, then A) real GDP is larger than nominal GDP. B) ... (Read 163 times)

WWatsford · **on:** Jun 29, 2018

If prices have increased since the base period, then

A) real GDP is larger than nominal GDP.
B) real GDP can no longer be compared to nominal GDP.
C) real GDP is equal to nominal GDP.
D) real GDP is smaller than nominal GDP.
E) there is no way to adjust nominal GDP so that it equals real GDP.

Question 2

During a(n) ________ the demand for money decreases because ________.

A) recession; the price level rises
B) recession; real GDP decreases
C) equilibrium; real GDP decreases
D) recession; nominal GDP increases
E) expansion; real GDP decreases