Which of the Following Is a True Statement About Real

question 242

Multiple Choice

Which of the following is a true statement about real and nominal GDP?

• A)If nominal GDP increases from one year to the next, we know that production of goods and services has risen.
• B)Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and services year after year.
• C)Increases in average prices do not affect the calculation of nominal GDP.
• D)If real GDP increases from one year to the next, we know that production of goods and services has risen.
• E)If real GDP increases from one year to the next, nominal GDP will have risen as well.

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