Do you agree or disagree with the following statement: ​'If a recession is so severe that the price level​ declines, then we know that both real GDP and nominal GDP must​ decline.' a. Agree. If both output and prices are​ falling, then both real GDP and nominal GDP will fall. b. Agree. If prices​ fall, real GDP and nominal GDP will both fall if output increases. c. Disagree. Real GDP falls if output falls. Nominal GDP can increase if output falls and prices rise. d. Disagree. Real GDP falls if output falls. Nominal GDP can increase if output falls and prices fall.

Which of following statements about Nominal and Real GDP are correct?i. If a country’s Nominal GDP increases, this country may produce more, less or even the same amount of goods and services.ii. Nominal GDP is always larger than Real GDP. iii. Nominal GDP is a widely used measure for a country’s economic performance using current prices, due to its convenience of calculation and interpretation.iv. Real GDP controls for changes in preferences and prices.Question 4Answera.i, iiib.i, ii, iiic.i, ii, iii, ivd.iii

If the price level increases, but the level of output remains the same from one year to the next,:Multiple choice question.real GDP will increase, but nominal GDP will remain the same.both nominal and real GDP will remain the same.nominal GDP will increase, but real GDP will remain the same.both nominal and real GDP will increase.

Suppose that nominal GDP in an economy in year 1 is $500 million and in year 2 is $600 million. If the price level of the goods and services produced has increased from an index number of 120 to an index number of 130 then, Group of answer choiceswhile nominal GDP increased between year 1 and year 2, real GDP must have decreased.while nominal GDP has decreased between year 1 and year 2, real GDP must have increased.while prices of the goods and services have increased by 10% between year 1 and year 2, real GDP has decreased by only 5%.while there has been inflation over this period, real GDP has still increased.

If real GDP falls from one period to another, we can conclude thatNone of these necessarily occursnominal GDP fell.prices decreased.inflation occurred.

Changes in nominal GDP:Question 18Select one:a.are due to changes in price only while changes in real GDP are attributed to movements in output and price.b.are due to changes in output and price while changes in real GDP are attributed to movements in output only.c.are due to changes in output and price while changes in real GDP are attributed to movements in price only.d.and changes in real GDP are due to changes in output and price.