Nominal GDP Measures the Value of Goods and Services Produced

question 118

Multiple Choice

Nominal GDP measures the value of goods and services produced in a given year valued using

• A)no prices.
• B)prices of the same year.
• C)base year prices.
• D)constant prices.
• E)future prices.

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Definitions:

Unity

In economic terms, unity can refer to a sense of agreement or cohesion among members of a market or organization, striving towards common goals or values.

Inelastic

Characterizes a condition in which the demand for a good or service is relatively unresponsive to changes in its price.

Elasticity of the Demand

A measure of how the quantity demanded of a good responds to a change in its price.