Real GDP Is More Accurate Than Nominal GDP in Making

question 7

Multiple Choice

Real GDP is more accurate than nominal GDP in making comparisons of output over time because

• A)Nominal GDP can increase simply because of price increases over time.
• B)Real GDP is not affected by output changes.
• C)Nominal GDP is the hypothetical output that would be produced at full employment.
• D)Real GDP is not affected by changes in productivity or the size of the labor force.

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Definitions:

Modeling

A psychological phenomenon where individuals learn and imitate behaviors by observing others, especially influential or authoritative figures.

Repetition

The act of repeating something that has already been said or written.

Associative Learning

A type of learning process in which a connection is made between two stimuli or between a behavior and a response.

Operant Behavior

Behavior that is controlled by its consequences, including rewards and punishments.