How does real gross domestic product (GDP) differ from nominal GDP?
A) Nominal GDP can be used to directly compare the amount of output produced from year to year, while real GDP cannot be used for such comparison.
B) Nominal GDP controls for price changes, while real GDP does not.
C) Real GDP controls for price changes, while nominal GDP does not.
D) There is no difference between nominal GDP and real GDP.
C
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Compared to corporations, businesses that are proprietorships
A) are far more numerous. B) account for a larger percentage of the economy's total revenue each year. C) can raise capital more cheaply. D) All of the above are correct answers.
If the isoquants are straight lines, then
A) inputs have fixed costs at all use rates. B) the marginal rate of technical substitution of inputs is constant. C) only one combination of inputs is possible. D) there are constant returns to scale.
Because people are more health conscious today than ever before, the demand for French fries has steadily fallen, causing the wage rate
a. and employment of workers in the French fries labor market to fall b. and employment of workers in the French fries labor market to rise c. to rise and employment of workers in the French fries labor market to rise d. to fall and employment of workers in the French fries labor market to rise e. to fall because both the labor demand and supply curves to shift to the right
Transfer payments are payments to individuals for which nothing is currently rendered in return.
Answer the following statement true (T) or false (F)