Which of the Following Is a True Statement About Real

question 41

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.

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Definitions:

Margin of Error

A statistic expressing the amount of random sampling error in a survey's results, defining a range within which the true population parameter is expected to lie with a certain level of confidence.

Normally Distributed

Describes a statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A measure of the amount of variance or dispersion of a set of values, indicating how much the values in a dataset deviate from the mean.

Margin of Error

A statistic expressing the amount of random sampling error in a survey's results.