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Nominal GDP Is $10,000 Billion in 2011, but Real GDP

Question 90

Multiple Choice

Nominal GDP is $10,000 billion in 2011, but real GDP is only $9,000. It follows that:


A) ​the GDP deflator is equal to 111.
B) ​the GDP deflator is equal to 100.
C) ​the GDP deflator is equal to 90.
D) ​prices must have decreased relative to the base year.

Correct Answer:

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