a given year, nominal GDP increased by about 2.5%. Over that year, the GDP deflator decreased by about 4%. From this information (and using our Aggregate Supply and Demand framework for analysis), we infer that over this year, Group of answer choices a) real GDP increased, and we had a decrease in Aggregate Demand. b) real GDP decreased, and we had a decrease in Aggregate Supply. c) real GDP increased, and we had an increase in Aggregate Demand. d) real GDP increased, and we had an increase in Aggregate Supply. e) real GDP decreased, and we had an increase in Aggregate Demand.
a given year, nominal GDP increased by about 2.5%. Over that year, the GDP deflator decreased by about 4%. From this information (and using our Aggregate Supply and Demand framework for analysis), we infer that over this year, Group of answer choices a) real GDP increased, and we had a decrease in Aggregate Demand. b) real GDP decreased, and we had a decrease in Aggregate Supply. c) real GDP increased, and we had an increase in Aggregate Demand. d) real GDP increased, and we had an increase in Aggregate Supply. e) real GDP decreased, and we had an increase in Aggregate Demand.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Over a given year, nominal GDP increased by about 2.5%. Over that year, the GDP deflator decreased by about 4%. From this information (and using our
Group of answer choices
a) real GDP increased, and we had a decrease in Aggregate Demand.
b) real GDP decreased, and we had a decrease in Aggregate Supply.
c) real GDP increased, and we had an increase in Aggregate Demand.
d) real GDP increased, and we had an increase in Aggregate Supply.
e) real GDP decreased, and we had an increase in Aggregate Demand.
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