In Figure 5.3, the fact that real GDP is greater than nominal GDP during the 1960-1980 period implies that:
A. Average price levels during this period must have been lower than during the base period.
B. Per capita GDP must have increased.
C. Average price levels must have decreased during this period.
D. Production must have decreased during this period.
Answer:A
In Figure 5.3, the fact that real GDP is greater than nominal GDP during the 1960-1980 period implies that:
A. Average price levels during this period must have been lower than during the base period. B. Per capita GDP must have increased. C. Average price levels must have decreased during this period. D. Production must have decreased during this period.