A Problem of Interpreting Nominal GDP Is That

question 34

Multiple Choice

A problem of interpreting nominal GDP is that:

• A) an increase in nominal GDP can be caused by changes in either price or quantity.
• B) it does not measure changes in employment.
• C) it does not measure changes in price.
• D) it does not include net exports.
• E) it does not include the value obtained through purchases of stocks and bonds.

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Definitions:

FDA

The Food and Drug Administration, a federal agency of the United States responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices, cosmetics, animal foods & feed and veterinary products.

Price of Pretzels

The amount of money required to purchase a specific quantity of pretzels, influenced by factors such as production costs and market demand.

Number of Buyers

Refers to the overall or potential quantity of consumers or entities in the market willing to purchase goods and services.

Law of Supply

The law of supply states that, keeping other factors constant, an increase in the price of a good or service will increase its supply, and vice versa.