How does real gross domestic product (GDP) differ from nominal GDP?
A) Nominal GDP can be used to directly compare the amount of output produced from year to year, while real GDP cannot be used for such comparison.
B) Nominal GDP controls for price changes, while real GDP does not.
C) Real GDP controls for price changes, while nominal GDP does not.
D) There is no difference between nominal GDP and real GDP.
C
You might also like to view...
A marginal external cost is the cost of producing an additional unit of a good that falls on the producer
Indicate whether the statement is true or false
Which of the following is closest to the definition of demand?
a. People's willingness to supply goods at specific prices. b. People's willingness to buy goods and services at given prices. c. People's expectations of lower prices of goods and services. d. Producer's expectations of selling more goods. e. The interaction of people's willingness to buy and sell goods.