In What Way Does Nominal GDP Differ from Real GDP

question 83

Multiple Choice

In what way does nominal GDP differ from real GDP?

• A)Nominal GDP tends to increase when total production of output in the economy increases, while real GDP does not.
• B)Nominal GDP is measured in base-year prices, while real GDP is measured in current-year prices.
• C)Nominal GDP is measured in current-year prices, while real GDP is measured in base-year prices.
• D)Nominal GDP does not exclude taxes paid to the government, while real GDP does.

---

Definitions:

Peer Pressure

The influence exerted by a peer group, encouraging individuals to change their attitudes, values, or behaviors to conform to group norms.

Diversity of Views

refers to the inclusion and respect of different perspectives, opinions, and ideas within a group or organization.

Unsuccessful Teamwork

A scenario where team members fail to work effectively together, leading to a lack of achievement of desired goals.

Trust

A firm belief in the reliability, truth, ability, or strength of someone or something, essential for effective communication.