In the second quarter (3-month period) of 2001, U.S. nominal GDP increased but U.S. real GDP declined. We can conclude that:

a) nominal income declined by more than personal income.
b) real wages declined by more than real GDP
c). the price level rose by more than nominal GDP.
d) the price level fell by more than real GDP.

ANSWER:

c). the price level rose by more than nominal GDP.