What Does Nominal GDP Measure

question 158

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 percentage change in price level

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Definitions:

Residential Construction

The building and selling of residential buildings such as houses, apartments, and condominiums.

Capacity Utilization Rate

The percentage of a firm's total possible production output that is actually being achieved, indicating how efficiently resources are being used.

Gross Investment

Gross Investment refers to the total amount of money spent on new capital assets, before accounting for depreciation.

Expected Profit Rate

The forecasted return on investment, considering the potential profits and the likelihood of achieving them.