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:

Culture

The arts, beliefs, and customs that are passed down from generation to generation within a society.

Stereotyping

The act of assigning generalized attributes to individuals based on their membership in a particular group, without acknowledging individual differences.

Xenophobia

A fear or hatred of foreigners or strangers.

Pluralism

A concept in sociology and political science that acknowledges a diverse society where multiple groups maintain their independent cultural traditions.