The Difference Between Nominal GDP and Real GDP Is That

question 93

Multiple Choice

The difference between nominal GDP and real GDP is that real GDP eliminates the effects from

• A) inflation.
• B) changes in productivity.
• C) depreciation.
• D) the unemployment rate.

---

Definitions:

Risk-Averse

A condition where an individual prefers outcomes with known probabilities over outcomes with unknown probabilities, typically avoiding higher risk.

Total Utility

The cumulative satisfaction or pleasure derived by a consumer from consuming a given amount of goods or services.

Income Fall

A decrease in the amount of money received by an individual, household, or entity, typically referring to earnings over a certain period.

Risk Aversion

A preference for guaranteed outcomes over those with uncertainty, even if the uncertain outcome might offer a higher expected return.