Finance Unbox-ED ($) - Grade 6-8 - Session 002 - Quiz 2

Select all the statements that are true

• Real GDP growth is the growth in quantities of goods and services
• Real GDP growth is the growth in market value of goods and services
• Nominal GDP growth is the growth in quantities of goods and services
• Nominal GDP growth is the growth in market value of goods and services

Real GDP Growth + Inflation = Nominal GDP Growth

• True
• False

Select all the statements that are true

• Nominal GDP growth is higher than real GDP growth when there is inflation
• Nominal GDP growth is lower than real GDP growth when there is deflation
• Nominal GDP growth is same as real GDP growth when prices are constant
• All of the above

Governments and economists focus more on real GDP growth than nominal GDP growth

• True
• False

When does stagflation happen?

• Stagflation happens when real GDP growth is low and inflation is low
• Stagflation happens when real GDP growth is low and inflation is high
• Stagflation happens when nominal GDP growth is low and inflation is low
• Stagflation happens when nominal GDP growth is low and inflation is high