What Does Nominal GDP Measure

question 138

Multiple Choice

What does nominal GDP measure?

• A)the total quantity of final goods and services produced
• B)the dollar value of the economy's output of final goods and services
• C)the total income received from producing final goods and services in constant dollars
• D)the price level

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Definitions:

Gross Domestic Product

The aggregate value of all products and services finished within a nation's boundaries over a distinct timeframe, measured in monetary or market terms.

Gross National Product

The total value of all goods and services produced by a country's residents in a specific time period, including international activities.

Output

The amount of goods or services produced by a company, country, or economic system.

Human Development Index

An index measuring average achievements in a country in three basic dimensions of human development: long and healthy life, knowledge, and a decent standard of living.