The Major Difference Between Nominal GDP and Real GDP Is

question 205

Multiple Choice

The major difference between nominal GDP and real GDP is that

• A)real GDP is the absolute value of goods and services and nominal GDP is a relative value.
• B)real GDP refers to products made in the United States and nominal GDP refers to both exports and imports.
• C)nominal GDP is the market value and real GDP has been adjusted for inflation.
• D)real GDP is a relative value and nominal GDP is an absolute value.

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Definitions:

Market Conditions

The various factors that influence the demand for and supply of products or services within a market.

Dollar Terms

The practice of expressing or measuring financial transactions, values, or performance in units of the U.S. dollar.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Markdown

A reduction from the original or listed price of an item, often used as a strategy to increase sales or clear out inventory.