Historically, Real GDP Has Increased Less Rapidly Than Nominal GDP

question 22

Multiple Choice

Historically, real GDP has increased less rapidly than nominal GDP because:

• A)price indices have not reflected improvements in product quality.
• B)the general price level has increased.
• C)technological progress has resulted in more efficient production.
• D)the general price level has declined.

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Definitions:

Invoice

A document issued by a seller to a buyer, detailing products or services provided, prices, and terms of payment.

Cheque

A document that is written, dated, and contains a signature, instructing a bank to pay a certain amount of money to either the person holding it or to an individual named in the document.

Credited

The action of officially recognizing or adding an amount to an account, often referring to the depositing of funds or acknowledgment of income earned.

Account

A record or statement of financial transactions pertaining to an individual, business, or other entity.