1)The value of currently produced final goods and services measured in current year prices is called:

A)Inflation

B)imputed values.

C)Nominal GDP

D)Real GDP

2)What is the difference between inflation and deflation?

Group of answer choices

A)Inflation is a measure of relative prices whereas deflation is a sustained increase in the price level.

B)None of the above.

C)Inflation is a sustained decrease in the price level whereas deflation is a sustained increase in the price level.

D)Inflation is a sustained increase in the price level whereas deflation is a sustained decrease in the price level.

3) Personal income taxes are reduced as part of an expansionary fiscal policy. What is the impact on aggregate expenditures and income?

A)Both decrease

B)Aggregate expenditure decreases and income increases

C)Both increase

D)Aggregate expenditure increases and income decreases

4)The value of currently produced final goods and services measured in constant prices is called:

A)Deflation

B)Real GDP

C)Inflation

D)Nominal GDP