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

question 135

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 1931?

• A)-6.93%. Real GDP is a better gauge of economic well-being than nominal GDP.
• B)-6.93%. Nominal GDP is a better gauge of economic well-being than real GDP.
• C)-6.49%. Real GDP is a better gauge of economic well-being than nominal GDP.
• D)-6.49%. Nominal GDP is a better gauge of economic well-being than real GDP.

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Definitions:

Guttation

The appearance of water droplets on leaves, forced out through leaf pores by root pressure.

Dawn

Dawn is the time that marks the beginning of the twilight before sunrise, characterized by the appearance of soft light in the sky.

Dusk

The time of day immediately following sunset, characterized by diminishing natural light.

Noon

The middle of the day, typically regarded as 12:00 PM, when the Sun is at its highest point in the sky.