Government Does Not

question 119

Multiple Choice

Government does not:

• A) build highways
• B) decide which airline can fly to which city
• C) provide medical insurance
• D) tell power companies what prices they can charge for electricity
• E) Governments provide all of these.

---

Definitions:

Nominal GDP

The gross domestic product measured at current market prices, without adjustment for inflation.

GDP Deflator

An index that measures the change in prices of all new, domestically produced, final goods and services in an economy over a period of time.

Inflation Rate

The magnitude of price escalation for goods and services across the board, causing a drop in consumer purchasing prowess.

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a given period, often measured annually.