One factor which did not influence the levels of real output and employment in the classical system was the

Refer to the figure above. This country has comparative advantage in

A) X. B) Y. C) both X and Y. D) Can't tell without more information.

Why is it important to use real GDP rather than nominal GDP figures when making comparisons of output across time periods?

A. The real GDP figures are a better measure of changes in the general level of prices. B. The real figures will reflect changes in the quantity of output and not changes in the general level of prices. C. The real figures will reflect changes in the general level of prices as well as changes in the quantity of output. D. The real GDP figures adjust for changes in the level of employment.