When Adjusting Nominal GDP for Price Changes, It Is Preferable

question 102

Multiple Choice

When adjusting nominal GDP for price changes, it is preferable to use the GDP deflator rather than the consumer price index because

• A) the GDP deflator is calculated for a narrow market basket of goods, approximating those items included in our measure of consumption expenditures.
• B) the GDP deflator calculates changes in the prices of items that more closely approximate those included in GDP.
• C) the GDP deflator is always less than the consumer price index, and therefore, it is a more stable index.
• D) the GDP deflator is the sum of the consumer price index and the wholesale price index.

Comprehend the role of self-efficacy in achieving personal goals and overcoming challenges.

Learn the significance of implementation intentions in turning goals into reality.

Grasp the two-factor theory of emotion and its application in everyday situations.

Understand the cognitive-appraisal theory of emotion and its role in emotional responses.

---

Definitions:

Law

A system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Arbitration Clause

A contract provision that requires disputes arising out of the contract to be resolved through arbitration rather than through the court system.

Employment Contract

A formal agreement specifying the terms and conditions of the relationship between an employer and an employee.