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  2. Business
  3. Principles of Economics Study Set 4
  4. Quiz 15: Spending, Income, and GDP

If Prices in the Current Year Are Higher on Average

Question 125
Multiple Choice

If prices in the current year are higher on average than in the base year,real GDP in the current year ______ nominal GDP in the current year. A)is greater than B)is less than C)is equal to D)could be greater than or less than

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Assume an economy produces only hamburgers and hotdogs and the base year is 2005. Given the data in the table above,what is the value of real GDP in 2006? A)$5,000 B)$7,000 C)$10,000 D)$10,500
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