Advantages of a Decentralized System Include(s)

question 8

Multiple Choice

Advantages of a decentralized system include(s)

• A)fostering intergovernmental competition.
• B)tailoring government to local tastes.
• C)intercommunity externalities.
• D)both A and B.

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Definitions:

Inflation

The rate of elevation in the uniform prices of goods and services, undermining the capability to buy more.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, detaching price changes from real output changes.

Nominal GDP

Gross Domestic Product measured in current market prices, without adjustment for inflation, reflecting the value of all goods and services produced by an economy in a year.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced within a country in real terms.