Consider the following data for a nation. Year Nominal GDP Price Index 1 $35 90 2 40 100 3 45 110 4 48 120 5 56 140 The country's real GDP declined between years rev: 04_09_2018 Multiple Choice 1 and 2. 2 and 3. 3 and 4. 4 and 5.

The correct option is the country's real GDP declined between years 3 and 4.

Explanation:

The data given in the question are first properly presented before answering the question as follows:

Year       Nominal GDP       Price Index

   1                $35                        90

   2                 40                       100

   3                 45                        110

   4                 48                       120

   5                56                        140

The decline in real GDP can now be determined by calculating the the real GDP for each year using the following formula:

Real GDP in a particular year = (Nominal GDP in the year / Price index in the year) * 100 (1)

Using equation (1), we therefore have:

Real GDP in Year 1 = ($35 / 90) * 100 = $38.89

Real GDP in Year 2 = ($40 / 100) * 100 = $40.00

Real GDP in Year 3 = ($45 / 110) * 100 = $40.91

Real GDP in Year 4 = ($48 / 120) * 100 = $40.00

Real GDP in Year 4 = ($56 / 140) * 100 = $40.00

From the above calculations, it can be seen that the real GDP declined from $40.91 in Year 3 to $40.00 in Year 4. Therefore, the correct option is the country's real GDP declined between years 3 and 4.

answer decisions made by individual households and firms;