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If Nominal or Money GDP Increases 6 Percent in 2011

Question 94

Multiple Choice

If nominal or money GDP increases 6 percent in 2011 (compared to 2010) , and real GDP increases 4 percent over the same period, which of the following must be true?


A) Exports exceeded imports.
B) The general price level as measured by the GDP deflator fell during 2011.
C) The economy entered a recession in 2011.
D) Inflation during 2011 was 2 percent.

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