In 1950,Nicaragua and Brazil Had Roughly the Same Size Economies

question 150

Multiple Choice

In 1950,Nicaragua and Brazil had roughly the same size economies.Now,Brazil's economy is almost five times as large as Nicaragua's.This is most likely because

• A) Brazil had almost no trade with other countries.
• B) Nicaragua had higher taxes and government spending.
• C) Brazil had better resources and technology.
• D) Nicaragua had many more government regulations.
• E) Brazil had no public school system and used private schools instead.

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Definitions:

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP to account for inflation.

Real GDP

The measure of a nation's economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

GDP

Gross Domestic Product is the cumulative market or monetary value of all completed goods and services generated inside a country's boundaries over a certain timeframe.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period, a primary measure of economic health.