4. Real versus nominal GDP Aa Aa
Consider a simple economy that produces two goods: cupcakes and muffins. The following table shows the prices and
quantities for the goods over a three-year period.
Prices and Quantities
Price of Quantity of Price of Quant
Which of the following would shift the demand curve out?
An increase in the price if it is an inferior good
Any change in price will only move the quantity demanded
An increase in price if it is an inferior good
Any change in price will only move the