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Refer to the Above Diagram

Question 94

Multiple Choice

Refer to the above diagram.Which of the following statements is correct? A) The price index is greater than 100 for every year shown on the graph. B) Nominal GDP must be deflated in each year prior to 1992 to determine real GDP. C) Real GDP has grown in this economy, but nominal GDP has not. D) Nominal GDP must be deflated in each year since 1992 to determine real GDP. Refer to the above diagram.Which of the following statements is correct?


A) The price index is greater than 100 for every year shown on the graph.
B) Nominal GDP must be deflated in each year prior to 1992 to determine real GDP.
C) Real GDP has grown in this economy, but nominal GDP has not.
D) Nominal GDP must be deflated in each year since 1992 to determine real GDP.

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