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    Principles of Economics Study Set 12
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    Exam 18: Measuring the Production, Income, and Spending of Nations
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    Suppose That Real GDP Grew More Slowly Than Nominal GDP
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Suppose That Real GDP Grew More Slowly Than Nominal GDP

Question 39

Question 39

Essay

Suppose that real GDP grew more slowly than nominal GDP between year 1 and year 2. What must have happened to prices on average?

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Prices must have increased. Since nomina...

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