The Difference Between Nominal GDP and Real GDP Is

question 131

Multiple Choice

The difference between nominal GDP and real GDP is

• A)that nominal GDP includes the depreciation of capital and real GDP does not.
• B)that nominal GDP includes net exports of goods and services and real GDP includes net imports.
• C)that real GDP includes the depreciation of capital and nominal GDP does not.
• D)the indirect taxes used in their calculations.
• E)the prices used in their calculations.

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Definitions:

Egalitarianism

A belief in human equality, especially with respect to social, political, and economic rights and privileges.

Collective Ownership

The holding of property or assets by all members of a group or community, sharing both rights and responsibilities.

Direct Voting

A voting system where citizens vote on laws, policies, or leaders directly, without intermediaries or representatives.

Individualistic

Pertaining to a social theory favoring freedom of action for individuals over collective or state control.