GDP Measured Using Current Prices Is Called

question 24

Multiple Choice

GDP measured using current prices is called:

• A) Nominal GDP
• B) Real GDP
• C) Constant GDP
• D) Deflated GDP

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Definitions:

Market Rate of Return

The average rate of return expected by investors from a market or security index over a specific time period.

CAPM

Stands for the Capital Asset Pricing Model, a model that describes the relationship between the expected return of an asset and its risk.

Liquidity

The ease with which an asset can be converted into cash without significantly affecting its price.

Trading Costs

Expenses associated with the buying and selling of securities, including commissions, spreads, and slippage.