Which of the Following Is True

question 146

Multiple Choice

Which of the following is true?

• A)Real GDP equals nominal GDP divided by the price level index, times one hundred.
• B)In periods of inflation, real GDP growth will tend to be greater than nominal GDP growth.
• C)In a country with a growing population, real GDP could be falling at the same time that real GDP per capita was rising.
• D)Marrying one's housekeeper would leave reported GDP unchanged.
• E)All of the underground economy represents income from illegal sources, such as drug dealing.

---

Definitions:

Current Account Items

Transactions that involve the trade of goods and services, income from foreign investments minus payments made to other countries, and cash transfers, within a country's balance of payments.

Export-Type Entries

Records or transactions that represent the sale of goods and services from one country to consumers in another country.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a negative balance of trade.

Aggregate Output

The total value of goods and services produced in an economy over a specific period of time.