Question 32If you are told that a country's nominal GDP decreased and its real GDP decreased over the sameblock of time, which of the following can you conclude with certainty?o The economy had inflation.O None of the choices listed is correct since none can be concluded with certainty.o The economy's price level remained constant.O The economy had disinflationo The economy had deflation.Question 33Assume the economy of a trading partner enjoys a high rate of growth, interest rates in theeconomy decrease, and there is an improvement in productivity. Which of the following is correct?o The equilibrium price level will definitely decrease.O The equilibrium price level will definitely increase.o The equilibrium real GDP will definitely decrease.O The equilibrium real GDP will definitely increase.

Real GDP (RGDP) = Nominal GDP (NGDP) / Price level (P) % Change in RGDP = % Change in NGDP - %…

D Question 32 If you are told that a country's nominal GDP decreased and its real GDP decreased over the same block of time, which of the following can you conclude with certainty? The economy had inflation. O None of the choices listed is correct since none can be concluded with certainty. The economy's price level remained constant. The economy had disinflation o The economy had deflation.

D Question 32 If you are told that a country's nominal GDP decreased and its real GDP decreased over the same block of time, which of the following can you conclude with certainty? The economy had inflation. O None of the choices listed is correct since none can be concluded with certainty. The economy's price level remained constant. The economy had disinflation o The economy had deflation.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 29P: The prime interest rate is the rate that banks charge their best customers. Based on the nominal...

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