Author Question: Which of the following is true of real GDP? a. It measures a nation's output in terms of current ... (Read 14 times)

Collmarie · **on:** Jun 30, 2018

Which of the following is true of real GDP?
a. It measures a nation's output in terms of current year prices.
b. It measures a nation's output in constant prices.
c. It measures the degree of change in the general price level in an economy.
d. It measures the change in the value of an economy's output.
e. It measures the value of both intermediate and final goods and services produced in an economy.

Question 2

Which of the following is true of nominal GDP?
a. It acts as an indicator of the general price level in the economy.
b. It measures the real level of output in the economy.
c. It measures national output based on the current year's prices.
d. It tends to rise by a smaller amount than real GDP when the general price level increases.
e. It measures changes in the output of intermediate goods and services.