If prices are rising on average, then
A) real GDP will be less than nominal GDP in the years before the base year.
B) real GDP will be greater than nominal GDP in the years after the base year.
C) real GDP will always be equal to nominal GDP.
D) real GDP will be greater than nominal GDP in the years before the base year.
D
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Refer to the scenario above. If the opportunity cost of time increases to $80 per hour, which of the following statements is true?
A) Maria should choose to drive as it saves her $10. B) Maria should choose to drive as it saves her $150. C) Maria should choose to travel by train as it saves her $10. D) Maria should choose to travel by train as it saves her $150.
If the GDP deflator in 2009 was 150 and the GDP deflator in 2010 was 175, then the inflation rate in 2010 was 25%
a. True b. False Indicate whether the statement is true or false