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If Nominal GDP Increased by 11 Per Cent While Real

Question 26

Multiple Choice

If nominal GDP increased by 11 per cent while real GDP increased by only 5 per cent, then:


A) the price level must have increased by around 6 per cent
B) the price level must have increased by around 16 per cent
C) the price level remained steady but real output fell by around 6 per cent
D) the unemployment rate must have fallen during the year

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