Q29. In the United States over the past several decades inflation has affected purchasing power. Which of the following BEST describes this effect?

a.$20 today has the same purchasing power as $150 in 1972.

b.$150 today has the same purchasing power as $20 in 1972.

c.$150 today has the same purchasing power as $75 in 1972.

Q30. In a small country, the macroeconomy in its base year was a nominal GDP of $600m. In a later year, the general level of all prices was two and a half times as high, and nominal GDP reached $1500m. Between the base year and the later year:

a.real GDP grew by more than 100%.

b.there was inflation.

c.real GDP declined.