Multiple Choice
Suppose nominal GDP in a country rose in the third quarter of 2008 (from the second quarter) . Yet, real GDP fell in the third quarter of 2008. What could have accounted for this?
A) The economy's price level declined over the second and third quarters of 2008.
B) The general price level in the economy in the third quarter is higher than that in the second quarter of 2008.
C) Production of goods must have increased by a greater rate than the increase in the economy's price level.
D) The population of the country must have increased over the last quarter.
Correct Answer:
Verified
Correct Answer:
Verified
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