To Study a Macroeconomy,we Calculate Aggregate Quantities in Real Terms

question 41

Multiple Choice

To study a macroeconomy,we calculate aggregate quantities in real terms because

• A) we want to get rid of the illusion of price effects.
• B) we want to concentrate on the production of real goods, as opposed to services.
• C) it is then easier to take logarithms.
• D) it is the only way to reconcile the three approaches to measuring GDP.

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Definitions:

Mesoderm

The mesoderm is the middle layer of an embryo in early development, giving rise to the musculoskeletal, circulatory, and other systems.

Thyroid

A gland in the neck that produces hormones regulating metabolism, growth, and development of the human body.

Urinary Bladder

The urinary bladder is a hollow muscular organ that collects and stores urine from the kidneys before disposal by urination.

Secondary Palate

Roof of the mouth in the early embryo that gives rise to the hard and the soft palates.