Of the Following,which Is Correct

question 266

Multiple Choice

Of the following,which is correct?

• A) Nominal GDP does not change when the production of goods and services increases.
• B) Nominal GDP is not affected by changes in prices of goods and services.
• C) Nominal GDP increases when the prices of goods and services increase.
• D) Real GDP changes only when the prices of goods and services really change.

---

Definitions:

Depression

A prolonged period of significant economic downturn, marked by high unemployment, low output, and declining prices.

Aggregate Demand

The cumulative demand for goods and services within an economy, reflecting the total spendable money available at various price points.

Government Economic Policy

The strategies and measures employed by a government to manage its economy, including taxation, spending, and interest rate settings.

Keynesian Approach

A macroeconomic theory that emphasizes the role of government intervention in stabilizing the economy and managing aggregate demand.