Comparing two countries' nominal GDP over time is likely to be misleading if one wants to determine whether standards of living are better in one country because
A. NDP instead of GDP should be used.
B. the figures must be adjusted for different types of currency.
C. the figures must be adjusted for price changes and population differences.
D. the figures must be adjusted to account for production differences.
Answer: C
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Refer to Figure 4-1. If the market price is $1.00, what is Arnold's consumer surplus?
A) $1.00 B) $2.00 C) $3.00 D) $7.00
David and Christian Romer's estimate of monetary policy's current effectiveness lag, defined as the time necessary for a policy change to have one-half its ultimate effect on GDP, is approximately ________ months
A) 2 B) 6 C) 10 D) 19 E) 24
If nominal GDP increases 4 percent during a year, and real GDP increases 7 percent during the same year, which of the following must by true?
a. The total value of GDP must have increased 11 percent during the year. b. The general level of prices as measured by the GDP deflator decreased by approximately 3 percent during the year. c. The general level of prices as measured by the GDP deflator increased by approximately 3 percent during the year. d. Imports must have been about 3 percent larger than exports during the year.
If there are concerns about moral hazard and adverse selection in a country
A. economic growth will reduce. B. there will be more foreign direct investment. C. it will be easier to arrange financing for new development projects. D. there will be more portfolio investment.