Gross Domestic Product in 2013 Was Almost Five Times Larger

question 46

Multiple Choice

Gross Domestic Product in 2013 was almost five times larger than it was in 1960 but it is important to note that

• A)none of the growth represented more output.
• B)measurement of output omitted any effect of inflation.
• C)the population grew substantially over the same time period.
• D)graphs of output were unable to display such growth.

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Definitions:

Risk Free Asset

An investment with a guaranteed return and no risk of financial loss, typically government bonds.

Expected Returns

The anticipated profit or yield from an investment, considering both the risk and the return.

Variance of Returns

A statistical measurement of the dispersion or spread of a set of investment returns, used to understand investment risk.

Positively Correlated

A relationship between two variables where they move in the same direction, meaning that as one variable increases, the other variable also increases, and vice versa.