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The Table Below Shows the Price Indexes and the Nominal

Question 16

Multiple Choice

The table below shows the price indexes and the nominal gross domestic product (GDP) for an economy from 2001 to 2005.The real GDP _____ between 2004 and 2005.
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Table 6.3
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 Year  Price Index  Nominal GDP 2001100$95 billion 2002105$110 billion 2003110$120 billion 2004120$125 billion 2005132$137.5 billion \begin{array} { c c c } \text { Year } & \text { Price Index } & \text { Nominal GDP } \\\hline 2001 & 100 & \$ 95 \text { billion } \\2002 & 105 & \$ 110 \text { billion } \\2003 & 110 & \$ 120 \text { billion } \\2004 & 120 & \$ 125 \text { billion } \\2005 & 132 & \$ 137.5 \text { billion }\end{array}


A) increased by about $5 billion
B) decreased by about $5 billion
C) remained almost constant
D) increased by about $2 billion
E) decreased by about $2 billion

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