Author Question: Suppose nominal GDP in 2009 does not change (compared its previous level in 2008). Given this ... (Read 107 times)

DyllonKazuo · **on:** Jun 30, 2018

Suppose nominal GDP in 2009 does not change (compared its previous level in 2008). Given this information, we know with certainty that

A) real GDP increased during 2009.
B) the GDP deflator increased during 2009.
C) both the GDP deflator and real GDP fell during 2009.
D) more information is needed to answer this question.

Question 2

During the mid-1980s, we observed a significant reduction in oil prices. In the United States, we would expect that this reduction in oil prices would cause

A) a larger reduction in the CPI compared to the GDP deflator.
B) an equal reduction in the CPI and GDP deflator.
C) a larger reduction in the GDP deflator compared to the CPI.
D) no change in the CPI and a reduction in the GDP deflator.