When Computing Economic Growth,changes in Nominal Gross Domestic Product (GDP)must

question 132

Multiple Choice

When computing economic growth,changes in nominal gross domestic product (GDP) must be adjusted to reflect changes in the price level because

• A) prices are nearly impossible to measure by government economists.
• B) an increase in prices will decrease nominal GDP without any actual economic growth.
• C) an increase in prices will increase nominal GDP without any actual economic growth.
• D) changes in prices are primarily determined by the government.
• E) changes in prices are largely irrelevant for consumers.

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Definitions:

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