Table 5-4 the Table Below Reports Nominal and Real GDP for the for the U.S

question 123

Multiple Choice

Table 5-4
The table below reports nominal and real GDP for the U.S. from 1929 to 1932.

-Refer to Table 5-3. What was the growth rate of real GDP for 1930?

• A) -8.62%. Real GDP is a better gauge of economic well-being than nominal GDP.
• B) -8.62%. Nominal GDP is a better gauge of economic well-being than real GDP.
• C) -9.43%. Real GDP is a better gauge of economic well-being than nominal GDP.
• D) -9.43%. Nominal GDP is a better gauge of economic well-being than real GDP.

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Definitions:

Treasury Bill

A short-term government security issued at a discount from par value and paying no interest, maturing in a year or less.

Simple Interest

Interest calculated only on the principal amount, without compounding on accumulated interest.

Selling Price

The amount of money for which a product or service is sold to customers.

Revolving Line of Credit

A credit facility extended by a financial institution to a customer that allows the customer to borrow up to a certain limit, pay down the balance, and then borrow again.