Suppose that nominal GDP in 2018 was less than real GDP in 2018. Given this information, we know for certain that
A) the price level in 2016 was greater than the price level in the base year.
B) the price level in 2016 was less than the price level in the base year.
C) real GDP in 2016 was less than real GDP in the base year.
D) real GDP in 2016 was greater than real GDP in the base year.
Answer: B
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You are given the following budget data for a country that has both a central government and local governments
(a) How much is the deficit for the central government, the local government, and the total of the central and local governments? (b) How much is the primary deficit for the central government, the local government, and the total of the central and local governments?
As the price of a good increases, the loss in consumer surplus is larger,
A) the more elastic demand is. B) the more money previously spent on the good. C) the less money previously spent on the good. D) the smaller the price increase.