If nominal GDP increases this year, then real GDP A) could ...

[shenderson6]

If nominal GDP increases this year, then real GDP
 
  A) could either increase or not change but cannot decrease.
  B) must decrease.
  C) must increase.
  D) must not change.
  E) could increase, decrease, or not change.

Question 2

The outlet substitution bias is most likely to put ________ and so ________ the inflation rate.
 
  A) a downward bias into the CPI; overstate
  B) no bias into the CPI because it is such a small effect; have no effect on
  C) a downward bias into the CPI; understate
  D) an upward bias into the CPI; overstate
  E) an upward bias into the CPI; understate

[Meganchabluk]

Answer to Question 1

E

Answer to Question 2

D

[shenderson6]

Correct answers!

[Meganchabluk]

Great! Please up vote