In the base year, the relationship between nominal and real GDP ...

[fbq8i]

In the base year, the relationship between nominal and real GDP is
 
  a. uncertain.
  b. one of equality.
  c. real GDP is higher.
  d. nominal GDP is higher.

Question 2

In the short run ________.
 
  A) the more flexible wages and prices are, the more inflation responds to the output gap
  B) the more sticky wages and prices are, the more difficult to tell the difference between the short run and long run aggregate supply curves
  C) if wages and prices are sticky, aggregate output is always at its potential level
  D) all of the above
  E) none of the above

[upturnedfurball]

Answer to Question 1

B

Answer to Question 2

A

[fbq8i]

Excellent

[tkempin]

TYSM