Which of the following is a true statement about real and nominal GDP?
A) Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and service year after year.
B) If real GDP increases from one year to the next, we know that production of goods and services has risen.
C) Increases in average prices do not affect the calculation of nominal GDP.
D) If nominal GDP increases from one year to the next, we know that production of goods and services has risen.
B
You might also like to view...
If the nominal interest rate is 0.6 percent and the rate of inflation is 2.9 percent in a given year, then what is the corresponding real rate of return?
A) 3.5 percent B) 2.3 percent C) -3.5 percent D) None of the above.
As a monopoly increases production, the price of all units sold falls, but marginal revenue increases
a. True b. False Indicate whether the statement is true or false