When Economists Talk About Growth in the Economy, They Measure

question 123

Multiple Choice

When economists talk about growth in the economy, they measure that growth as the

• A)absolute change in nominal GDP from one period to another.
• B)percentage change in nominal GDP from one period to another.
• C)absolute change in real GDP from one period to another.
• D)percentage change in real GDP from one period to another.

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Definitions:

Promissory Note

A written, legally binding document in which one party promises to pay a specified sum of money to another party under agreed terms.

Takeover Bid

An offer made to acquire some or all of shareholders' shares in a corporation with the aim of gaining control of the company.

Cumulative Dividend

A feature of preferred stock that entitles shareholders to receive dividends that were omitted in the past.

Par Value

The nominal or face value of a share of stock or a bond as stated by the issuer.