Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. Between 2012 and 2013, which grew more rapidly, nominal GDP or real GDP?
A) Real GDP grew more rapidly.
B) Both grew at the same rate.
C) Nominal GDP grew more rapidly.
D) Because real GDP and nominal GDP use different prices, it is not possible to determine which grew most rapidly.
E) More information is needed to determine which grew more rapidly.
C
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In June 1960, the price of gasoline in the Midwest was $0.169 per gallon and the CPI was 29.6 with a base period of 1982 to 1984. What was the real price of gasoline per gallon in base period dollars?
A) $0.05 per gallon B) $0.057 per gallon C) $0.169 per gallon D) $0.571 per gallon E) $0.296 per gallon
During the business cycle, an economic upturn occurs:
A. at the peak of the business cycle. B. in between the trough and peak of the business cycle. C. in between the peak and trough of the business cycle. D. at the trough of the business cycle.