Real GDP Is Preferred to Nominal GDP as a Measure

question 152

Multiple Choice

Real GDP is preferred to nominal GDP as a measure of economic performance because

• A) nominal GDP uses current prices and thus may over or understate true changes in output.
• B) nominal GDP only includes goods and excludes services.
• C) nominal GDP is not adjusted for population changes.
• D) real GDP accounts for changes in the quality of goods and services produced.

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Definitions:

Cultural Pressures

Social forces exerted by the cultural context of a society on individuals to conform to established norms and values.

Family Background

The social, economic, and educational characteristics and environments of one's parents or family of origin.

Genetic Factors

Elements within an organism's genetic makeup that influence traits, behaviors, and their susceptibility to diseases.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors such as self-induced vomiting, aimed at preventing weight gain.