When Economists Talk About Growth in the Economy, How Do

question 166

Multiple Choice

When economists talk about growth in the economy, how do they measure that growth?

• A) with the absolute change in nominal GDP
• B) with the percentage change in real GDP
• C) with the absolute change in real GDP
• D) with the percentage change in nominal GDP

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Definitions:

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement planning.

Discount Rate

The interest rate by which future cash flows are devalued to their present worth in a DCF analysis.

Cash Flows

represent the net amount of cash and cash-equivalents being transferred into and out of a business.

Zero-Interest Financing

Zero-Interest Financing is a loan or credit offer with a 0% interest rate for a set period, making purchases more affordable upfront but often requiring a good credit score.