If You Want to Investigate the Claim That More Goods

question 7

Multiple Choice

If you want to investigate the claim that more goods and services were produced in the economy during 2014 than 2015, what should you study?

• A)real GDP
• B)nominal GDP
• C)intermediate GDP
• D)GDP calculated using the expenditure approach
• E)GDP calculated using the income approach

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Definitions:

Interest Rates

The percentage of a loan charged as a cost of borrowing or paid as a part of return on savings, typically expressed as an annual percentage of the principal.

Classical Economists

A group of economists in the late 18th and early 19th centuries who believed in the theory that markets function best without government intervention.

Adam Smith

A Scottish economist, philosopher, and author known as the father of modern economics, famous for his work "The Wealth of Nations."

Aggregate Demand

The total demand for all goods and services in an economy at different price levels, during a specific time period.