A Shortcoming of Nominal GDP Is That

question 103

Multiple Choice

A shortcoming of 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.