Asked by
Michael Dudley
on Nov 30, 2024
Verified
If GDP rose from $6 trillion in the base year to $8 trillion in the current year and there was deflation during this period,what is the most accurate statement we can make?
A) Real GDP declined between the base year and the current year.
B) Real GDP rose by less than one-third between the base year and the current year.
C) Real GDP rose by one-third between the base year and the current year.
D) Real GDP rose by more than one-third between the base year and the current year.
Deflation
A drop in the overall pricing of goods and services, typically signaling a shrinkage in the money or credit available in the economy.
- Differentiate among nominal GDP, real GDP, and the GDP deflator.
Verified Answer
CP
Learning Objectives
- Differentiate among nominal GDP, real GDP, and the GDP deflator.