Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When the GDP deflator is equal to 125 real GDP is $ 140 bn., and when the deflator is equal to 165 real GDP is

When the GDP deflator is equal to 125 real GDP is $ 140 bn., and when the deflator is equal to 165 real GDP is $ 115 bn. This increase in the price level means that: *

A) nominal GDP rises by $ 14.75 bn.

B) nominal GDP rises by 40%

C) nominal GDP falls by $ 25 bn.

D) nominal GDP falls by $ 13.25 bn.

E) none of the other answers is correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics For Engineers And Scientists

Authors: William Navidi

3rd Edition

73376345, 978-0077417581, 77417585, 73376337, 978-0073376332

Students also viewed these Economics questions