Why Is It Important to Use Real Rather Than Nominal

question 161

Multiple Choice

Why is it important to use real rather than nominal GDP figures when making comparisons of output across time periods?

• A) The real GDP figures are a better measure of changes in the general level of prices.
• B) The real figures will reflect changes in the quantity of output and not changes in the general level of prices.
• C) The real figures will reflect changes in the general level of prices as well as changes in the quantity of output.
• D) The real GDP figures adjust for changes in the level of employment.

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Definitions:

Impulse

A sudden, involuntary urge to perform an action or a quick transmission of electrical signals along a nerve pathway.

Dendrites

Projections of a neuron that receive signals from other neurons or sensory receptors and conduct them towards the cell body.

Cell Body

Also known as the soma, this is the central part of a neuron that contains the nucleus and is essential for processing and transmitting neural information; another term for neuron cell bodies.