Which of the Following Is Not a Correct Statement About

question 7

Multiple Choice

Which of the following is not a correct statement about the growth of real GDP in the U.S.economy?

• A)Real GDP in 2009 was almost four times its 1965 level.
• B)Growth was steady between 1965 and 2009.
• C)Continued growth in real GDP enables the typical American to enjoy greater economic prosperity than his or her parents and grandparents did.
• D)The output of goods and services produced grew on average about 3 percent per year between 1965 and 2009.

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Definitions:

Real Exchange Rate

The rate at which a person can exchange the currency of one country for the currency of another and obtain the same quantity of goods.

Purchasing-power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to assess relative currency value and living standards.

Nominal Exchange Rate

The Nominal Exchange Rate is the rate at which one country's currency can be traded for another's, not adjusted for inflation, reflecting the current value of one currency compared to another.

Prices

The monetary value expected, demanded, or delivered in exchange for a good or service.