Author Question: Use the following information to answer this question. If nominal GDP rises from 100 trillion to 120 ... (Read 47 times)

newbem · **on:** Jun 30, 2018

Use the following information to answer this question. If nominal GDP rises from 100 trillion to 120 trillion, while the GDP deflator rises from 2.0 to 2.2, the percentage change in real GDP is approximately equal to

A) -10.
B) 10.
C) 20.
D) 9.1.
E) 0.

Question 2

Suppose nominal GDP increased in a given year. Based on this information, we know with certainty that

A) real output has increased.
B) the price level (GDP deflator) has increased.
C) real output and the price level (GDP deflator) have both increased.
D) either real output or the price level (GDP deflator) have increased.
E) real output has increased and the price level has decreased.