Under What Conditions Will Nominal GDP Always Equal Real GDP

question 16

Multiple Choice

Under what conditions will nominal GDP always equal real GDP?

• A)if prices are declining
• B)if the economy's total production does not change
• C)if prices are increasing
• D)in the base year

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Definitions:

Elite Theory

Elite theory proposes that a small, cohesive group of elites holds the most power in society, and this power is largely independent of democratic elections.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.

Minimum Government

A principle advocating for minimal intervention by the government in the affairs of individuals and society, emphasizing freedom and limiting the scope of governmental power.

Peace and Security

Conditions where societies enjoy stability, safety from violence, conflict, and fear, allowing for the development and growth of individuals and communities.