The Measure of Production That Values Output Using a Base

question 62

Multiple Choice

The measure of production that values output using a base year is called:

• A)value-added GDP.
• B)nominal GDP.
• C)real GDP.
• D)underground GDP.

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Definitions:

Real Return

The return on an investment after adjusting for inflation, reflecting the actual purchasing power of the amount returned.

Net Capital Outflow

The skew in investment patterns between domestic entities investing abroad and foreign entities investing domestically.

Factories

Are industrial sites where goods are produced or processed, typically utilizing machinery and labor.

Exchange Rate

The price of a currency in terms of another, establishing how much of the first currency is equivalent to the second during exchange.