Asked by
Christian Villaseñor
on Oct 13, 2024Verified
If nominal GDP in 2012 exceeds nominal GDP in 2011,which of the following combinations of changes in the price level and production could not account for the difference?
A) Higher price level,greater production
B) Higher price level,less production
C) Higher price level,same production
D) Same price level,greater production
E) Lower price level,less production
Nominal GDP
The gross domestic product measured at current market prices, without adjusting for inflation, reflecting the value of all goods and services produced.
Price Level
Refers to the average of current prices across the entire spectrum of goods and services produced in the economy.
Production
The process of combining various material inputs and immaterial inputs (plans, knowledge) to make something for consumption.
- Discriminate between real and nominal GDP, understanding how each is affected by inflation and deflation.
Verified Answer
DD
Learning Objectives
- Discriminate between real and nominal GDP, understanding how each is affected by inflation and deflation.