Table 10-3
the Table Below Reports Nominal and Real GDP

question 92

Multiple Choice

Table 10-3
The table below reports nominal and real GDP for the U.S. from 1929 to 1932. $$\begin{array} { c c c } \hline \text { Year } & \begin{array} { c } \text { Nominal } \\\text { GDP }\end{array} & \text { Real GDP } \\\hline 1929 & 103.6 & 977 \\1930 & 91.2 & 892.8 \\1931 & 76.5 & 834.9 \\1932 & 58.7 & 725.8 \\\hline\end{array}$$
-Refer to Table 10-3. What was the growth rate of real GDP for 1930?

• A)-8.62%. Real GDP is a better gauge of economic well-being than nominal GDP.
• B)-8.62%. Nominal GDP is a better gauge of economic well-being than real GDP.
• C)-9.43%. Real GDP is a better gauge of economic well-being than nominal GDP.
• D)-9.43%. Nominal GDP is a better gauge of economic well-being than real GDP.

---

Definitions:

Sample Statistic

A numerical value calculated from a subset (sample) of a population, used to estimate the characteristics of the entire population.

Chebysheff's Theorem

A statistical theorem that provides a minimum probability for how much data falls within a certain number of standard deviations from the mean, applicable for any data distribution.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Variance

Variance measures the dispersion of a set of data points around their mean value, indicating how spread out the data is.