Measuring GDP in Nominal Terms

question 56

Multiple Choice

Measuring GDP in nominal terms

• A)is the most effective method because it accurately measures how an economy's physical production has changed over time.
• B)is unreliable because the quality of goods changes over time.
• C)is the market value of an economy's final output using the market prices of a given base year.
• D)does not tell us how an economy's physical production has changed over time.

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Definitions:

Financial Markets

Marketplaces where individuals and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.

Market Prices

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Security Prospects

The potential for growth or return in investments related to the security or safety of assets.

Medical Study

Research conducted to investigate health-related outcomes, treatments, or conditions in a controlled and systematic manner.