Which of the following statements about nominal GDP and real GDP is correct?
a. Nominal GDP is a better gauge of economic well-being than real GDP.
b. Real GDP is a better gauge of economic well-being than nominal GDP.
c. Real GDP and nominal GDP are equally good measures of economic well-being.
d. Neither nominal nor real GDP provide a measure of economic well-being.
b
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At macroeconomic equilibrium
A) total taxes equal total transfers. B) total consumption equals total production. C) total investment equals total inventories. D) total spending equals total production.
According to the Romer model, tax incentives to support research and development will lead to ________
A) higher tax rates in the future B) an increase in the general level of prices C) a decrease in the general level of prices D) increased per capita income
Barriers to entry into a monopolistically competitive industry are virtually impossible to overcome
Indicate whether the statement is true or false
Which of the following is likely to be excluded while calculating the opportunity cost of attending university?
a. The cost of haircuts received during the school term b. The income from a part-time job that is forgone in order to attend classes c. Tuition fees paid during the school term d. The cost of required textbooks