Which of the Following Is Correct

question 36

Multiple Choice

Which of the following is correct?

• A)Nominal GDP is always less than real GDP.
• B)Nominal GDP is always greater than real GDP.
• C)Nominal GDP equals real GDP in the base year.
• D)Nominal GDP equals real GDP in all years but the base year.

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Definitions:

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners.

Foreign-Currency Exchange

The system through which one currency is converted into another, enabling international transactions without the impediment of differing national currencies.

U.S. Resident

An individual who lives in the United States, regardless of citizenship status, for a significant portion of the calendar year.

Government Budget Deficit

The financial situation in which a government's expenditures exceed its revenues, leading to borrowing or reducing reserves.