Which statement represents most correctly the relationship between nominal GDP and real GDP?
a. Nominal GDP measures base-year production using base-year prices, whereas real GDP measures current production using current prices.
b. Nominal GDP measures current production using base-year prices, whereas real GDP measures current production using current prices.
c. Nominal GDP measures current production using current prices, whereas real GDP measures current production using base-year prices.
d. Nominal GDP measures current production using current prices, whereas real GDP measures base-year production using base-year prices.
C
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Suppose the local university charges $85 per credit hour. If tuition increases from $85 to $93 per credit hour, using the midpoint method, what is the percentage change in price?
A) 8.99 percent B) 8.00 percent C) 9.41 percent D) 8.62 percent E) 9.12 percent
The price effect is the effect of a ________ on the quantity of the good ________
A) decrease in the price; demanded B) change in the price; supplied C) change in price and income; consumed D) change in the price; consumed