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Refer to the Diagram

Question 57

Multiple Choice

Refer to the 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 2000 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 after 2000 to determine real GDP. Refer to the 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 2000 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 after 2000 to determine real GDP.

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