Table 23-3
the Following Table Reports Nominal and Real GDP

question 37

Multiple Choice

Table 23-3
The following table reports nominal and real GDP for the U.S. from 1929 to 1932.
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$$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Nominal GDP } \\\text { (Billions of dollars) }\end{array} & \begin{array} { c } \text { Real GDP } \\\text { (Billions of dollars) }\end{array} \\\hline 1929 & 103.6 & 977 \\\hline 1930 & 91.2 & 892.8 \\\hline 1931 & 76.5 & 834.9 \\\hline 1932 & 58.7 & 725.8 \\\hline\end{array}$$
-Refer to Table 23-3. What was the growth rate of real GDP for 1930?

• A)?8.62%.Real GDP is a better gauge of economic well-being than nominal GDP.
• B)?8.62%.Nominal GDP is a better gauge of economic well-being than real GDP.
• C)?9.43%.Real GDP is a better gauge of economic well-being than nominal GDP.
• D)?9.43%.Nominal GDP is a better gauge of economic well-being than real GDP.

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Definitions:

Equal Payments

Regular payments of the same amount, typically in the context of loan repayments or financial agreements.

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

No Interest

A financial condition where no additional money is charged beyond the principal amount borrowed or no profit is earned on an investment over time.

Minimum Purchase

A specified smallest amount or number needed to be bought.