Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012.

-Assuming the price level increased,if real GDP is greater than nominal GDP for a given year,then:
A) the growth in output was less than the growth in the price level.
B) the growth in output was greater than the growth in the price level.
C) the growth in output was equal to the growth in the price level.
D) the given year is before the base year.
E) the given year is after the base year.

Question

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012.
 
-Assuming the price level increased,if real GDP is greater than nominal GDP for a given year,then:
A) the growth in output was less than the growth in the price level. 
B) the growth in output was greater than the growth in the price level. 
C) the growth in output was equal to the growth in the price level. 
D) the given year is before the base year. 
E) the given year is after the base year.

Quizplus · Accepted Answer

Real GDP being greater than nominal GDP indicates that the given year is before the base year, as real GDP is adjusted for inflation using base year prices.

Consider the Following Data That Gives the Quantity Produced and Unit